RBC Capital Upgrades Johnson & Johnson to “Outperform” (JNJ)
Johnson & Johnson (NYSE:JNJ) was upgraded by analysts at RBC Capital from a “sector perform” rating to an “outperform” rating in a research report issued to clients and investors on Tuesday, TheFlyOnTheWall.com reports. The firm currently has a $104.00 price target on the stock, up from their previous price target of $88.00. RBC Capital’s target price points to a potential upside of 10.30% from the company’s current price.
The analysts wrote, “While the near term investment thesis in JNJ will continue to be about pharma growth, we believe that investors may be overlooking the operating margin expansion opportunity that exists over the longer term,” the report said. “JNJ delivered over 100bps of operating margin expansion in 2013, and is poised to deliver ~100bps in 2014 (ex the impact from the yen). Overall, we believe that JNJ is positioned to deliver 100-150bps of annual operating margin leverage over the next three years, as spend behind recent pharma launches abates and consumer remediation spend slows, and f/x becomes less of a drag. This should translate into high single digit EPS growth over the next three years. Our 2015 EPS forecast of $6.42 is $0.14 above Consensus.”
A number of other firms have also recently commented on JNJ. Analysts at Guggenheim raised their price target on shares of Johnson & Johnson from $47.00 to $60.00 in a research note to investors on Tuesday, December 17th. Separately, analysts at Robert W. Baird raised their price target on shares of Johnson & Johnson from $56.00 to $62.00 in a research note to investors on Monday, December 16th. Finally, analysts at Deutsche Bank raised their price target on shares of Johnson & Johnson from $93.00 to $95.00 in a research note to investors on Monday, December 16th. They now have a “hold” rating on the stock. Three investment analysts have rated the stock with a sell rating, four have given a hold rating and eight have assigned a buy rating to the company’s stock. The company currently has an average rating of “Hold” and an average target price of $85.00.
Johnson & Johnson (NYSE:JNJ) traded up 2.12% during mid-day trading on Tuesday, hitting $94.29. 11,089,742 shares of the company’s stock traded hands. Johnson & Johnson has a 52-week low of $71.50 and a 52-week high of $95.99. The stock has a 50-day moving average of $93.19 and a 200-day moving average of $90.79. The company has a market cap of $266.0 billion and a price-to-earnings ratio of 20.59.
The company also recently declared a quarterly dividend, which is scheduled for Tuesday, March 11th. Stockholders of record on Tuesday, February 25th will be given a dividend of 0.66 per share. This represents a $2.64 dividend on an annualized basis and a yield of 2.80%. The ex-dividend date of this dividend is Friday, February 21st.
Johnson & Johnson is a holding company. The Company is engaged in the research and development, manufacture and sale of a broad range of products in the health care field.
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