Due to its improving tends and diversification, Deutsche Bank upgraded pharmaceutical and consumer goods manufacturer Johnson & Johnson (JNJ) on Friday
Deutsche Bank upgraded JNJ from “Hold” to “Buy” with a new price target of $82, a +15.9% upside to Thursday’s closing price of $70.74. The previous target was $75.
A Deutsche Bank analyst commented, “For the past several years, JNJ has weathered through patent expirations, a general slowdown in utilization trends, and challenges with its OTC businesses. As we look ahead to 2013, we believe JNJ will see improving trends. We expect recent and new drugs to continue to drive pharma sales. A slight improvement in utilization and new products should benefit MD&D. For Consumer, J&J should continue to work through the McNeil Consent Decree and return products to market. Given these improving trends and the benefits of diversification, we believe JNJ deserves a premium to its peers.”
Johnson & Johnson shares were flat in premarket trading on Friday. The stock is up +7.87% over the past year.
The Bottom Line
We have been recommending shares of Johnson & Johnson (JNJ) since April 27, 2012, when the stock was trading at $64.75. The company has a 3.45% dividend yield, based on last night’s closing stock price of $70.74.
Johnson & Johnson (JNJ) is recommended at this time, holding a Dividend.com DARS™ Rating of 3.5 out of 5 stars.