Johnson & Johnson Cut to “Neutral” at Goldman Sachs (JNJ)
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
Shares of Johnson & Johnson ( JNJ ) have a 3.61% dividend yield, based on last night's closing stock price of $63.13. The stock has technical support in the $58-$60 price area. If the shares can firm up, we see overhead resistance around the $66-$68 price levels.
Johnson & Johnson ( JNJ ) is not recommended at this time, holding a Dividend.com DARS™ Rating of 3.4 out of 5 stars.