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Johnson & Johnson Cut to “Neutral” at Goldman Sachs (JNJ)
9/22/2011 8:34:00 AM
Healthcare giant Johnson & Johnson ( JNJ ) on Thursday caught a big downgrade from analysts at Goldman Sachs.
The firm said it lowered its rating on JNJ from "Buy" to "Neutral" with a $74 price target. That target suggests a 17% upside to the stock's Wednesday closing price of $63.13.
Goldman noted that while it still likes JNJ, two factors have made them a bit less bullish: The drugmaker's Xarelto treatment won't be nearly as successful as originally forecast, and the fact that its Medical Devices and Diagnostics segment is seeing weak utilization trends.
Johnson & Johnson shares fell $1.03, or -1.6%, in premarket trading Thursday.
The Bottom Line
Johnson & Johnson ( JNJ ) is not recommended at this time, holding a Dividend.com DARS™ Rating of 3.4 out of 5 stars.