Healthcare giant Johnson & Johnson (
) 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
Johnson & Johnson shares fell 33 cents, or -0.5%, in
premarket trading Friday.
The Bottom Line
We have been recommending shares of Johnson & Johnson (
) 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 (
) 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