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Johnson & Johnson’s Estimates Cut at UBS on OTC Closure (JNJ)
Health care giant Johnson & Johnson ( JNJ ) saw its earnings estimates lowered on Friday by analysts at UBS.
The firm said it lowered its estimates for JNJ through 2011, citing a longer-than-expected closure of the company's Washington-based over-the-counter drug facility. The company has issued a recall on some of its Benedryl and Tylenol products, after customer complaints about a moldy smell that can cause nausea and sickness.
Still, UBS maintained its "Buy" rating and $75 price target for the stock. That target represents a nearly 26% upside to the stock's Thursday closing price of $59.60.
Johnson & Johnson shares rose 37 cents, or +0.6%, in premarket trading Friday.
The Bottom Line
We have been recommending shares of JNJ since Oct.8, when the stock was trading at $60.71. The company has a 3.62% dividend yield, based on last night's closing stock price of $59.60.
Johnson & Johnson ( JNJ ) is a "recommended" dividend stock, holding a Dividend.com DARS™ Rating of 3.5 out of 5 stars.