Analysts’ recommendations for JNJ
In the final part of this series, we’ll take a look at Wall Street analysts’ recommendations and target prices for Johnson & Johnson’s (JNJ) stock over the next year. Based on recommendations from 25 broker firms in a Bloomberg survey, 44% of firms gave Johnson & Johnson a “buy” rating. The company received “hold” ratings from 56% of firms. None of the firms rated Johnson & Johnson a “sell.”
The table above lists the 13 brokerage firms that provided a target price for Johnson & Johnson for the next 12 months. The consensus 12-month target price is $124.20, which represents a drop of 0.9% from the stock’s closing price of $125.20 on July 19, 2016.
As of July 20, 2016, Atlantic Equities gave Johnson & Johnson a one-year target price of $105, the lowest target price of all. This target price implies a 16.2% drop over the next 12 months. Among the large investment banks, Morgan Stanley gave Johnson & Johnson a one-year target price of $128, which implies a return of ~2.2% over the next 12 months. Leerink Partners gave the stock its highest one-year target price of $140, which implies a return of ~11.8%.
Peers Medtronic (MDT), Zimmer Biomet Holdings (ZBH), and Becton, Dickinson and Company (BDX) have average broker target prices of $92.90, $131.20, and $182.50, respectively. These figures imply returns of 4.8%, 3.7%, and 3.8%, respectively, over the next 12 months. Investors can get diversified exposure to Johnson & Johnson by investing in the iShares Russell 1000 Value ETF (IWD), which invests 2.7% of its total holdings in JNJ.