Johnson & Johnson Gets Analyst Upgrade Noting Bullish Pharma & MedTech Projections
Portfolio Pulse from Vandana Singh
UBS has upgraded Johnson & Johnson (NYSE:JNJ) from Neutral to Buy with a new price target of $180, citing a bullish outlook on its pharmaceutical business and MedTech growth. JNJ's recent spinoff of its consumer health company Kenvue Inc (NYSE:KVUE) allows it to focus on healthcare and MedTech. Despite concerns over talc litigation impacting JNJ's stock, UBS is confident in JNJ's ability to outperform consensus expectations in Pharma sales and achieve MedTech growth.
December 01, 2023 | 6:05 pm
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NEUTRAL IMPACT
Kenvue Inc, the consumer health company spun off from Johnson & Johnson, is now separately listed and may be indirectly affected by JNJ's upgrade due to its historical association.
While the upgrade is specific to JNJ, Kenvue Inc may experience indirect effects as investors reassess the value proposition of the spinoff in light of JNJ's positive outlook. However, the impact is less direct and therefore the score is neutral with moderate relevance and importance.
CONFIDENCE 70
IMPORTANCE 50
RELEVANCE 50
POSITIVE IMPACT
UBS upgraded Johnson & Johnson to Buy from Neutral and raised the price target to $180, indicating a positive outlook on the company's Pharma and MedTech sectors.
The upgrade by UBS reflects a strong confidence in Johnson & Johnson's future performance, particularly in its pharmaceutical and MedTech divisions. The positive sentiment from a major analyst firm can lead to increased investor interest and potentially drive the stock price up in the short term.
CONFIDENCE 85
IMPORTANCE 90
RELEVANCE 100