Healthcare products giant Johnson & Johnson (
) on Monday saw its rating and price target boosted by analysts at
The firm upgraded JNJ from "Market Perform" to "Outperform" and
raised its valuation range from $67-68 to $70-72. That new range
implies up to a 12% upside to the stock's Friday closing price of
A Wells Fargo analyst commented, "We downgraded JNJ to Market
Perform on 12/9/2010 because we saw significant risk of a second
plant shut down in JNJ's Consumer business. However, we believe
that JNJ is poised to outperform over the next 12 months because
(1) the Consumer division risks have been mitigated by the consent
decree: (2) the company plans to launch 4 major new drugs in H2
2011-our favorable view of the pipeline and blockbuster
opportunities remain unchanged; (3) potential acquisition of
Synthes represents upside to estimates; and (4) the MD&D
business should benefit from easier comps going forward."
Johnson & Johnson shares rose 35 cents, or +0.6%, in
premarket trading Monday.
The Bottom Line
Shares of Johnson & Johnson (
) have a 3.37% dividend yield, based on Friday's closing stock
price of $64.07. The stock has technical support in the $60 price
area. If the shares can firm up, we see overhead resistance around
the $66-$68 price levels.
Johnson & Johnson (
) is not recommended at this time, holding a Dividend.com DARS™
Rating of 3.4 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