Johnson & Johnson Started as a “Hold” at Deutsche Bank (JNJ)

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Healthcare giant Johnson & Johnson ( JNJ ) on Friday saw its coverage initiated with a "Hold" rating by analysts at Deutsche Bank.

The firm also set a $73 price target on JNJ, suggesting a 7% upside to the stock's Thursday closing price of $67.92.

A Deutsche analyst commented, "We believe J&J's pharma pipeline is well understood and do not see any major differences between our forecast and consensus. The exit of coronary stents makes sense but may pressure near-term sales and earnings. We are cautious on the pending Synthes deal. The worst is likely behind Consumer OTC as J&J returns products to market but rebating likely required and private labels continue to pressure. Based on a sum-of-the-parts valuation, we see some upside but not enough to warrant a more positive stance given our inline EPS outlook."


Continuing, "We believe the Consumer OTC business is likely to improve with easy comps and as products come back to market, but higher rebating is likely and private labels will continue to pressure results."

Johnson & Johnson shares fell 33 cents, or -0.5%, in premarket trading Friday.

The Bottom Line
We have been recommending shares of Johnson & Johnson ( JNJ ) since Apr.29, when the stock was trading at $65.38. The company has a 3.36% dividend yield, based on last night's closing stock price of $67.92.

Johnson & Johnson ( JNJ ) is a "Recommended" dividend stock, holding a Dividend.com DARS™ Rating of 3.6 out of 5 stars.

Be sure to visit our complete recommended list of the Best Dividend Stocks , as well as a detailed explanation of our ratings system here .



The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of The NASDAQ OMX Group, Inc.

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