Johnson & Johnson Upgraded to “Outperform” at Wells Fargo (JNJ)
Healthcare products giant Johnson & Johnson ( JNJ ) on Monday saw its rating and price target boosted by analysts at Wells Fargo.
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 $64.07.
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 ( JNJ ) 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 ( JNJ ) is not recommended at this time, holding a Dividend.com DARS™ Rating of 3.4 out of 5 stars.