In this final part of the series, let’s have a look at Wall Street analysts’ recommendations and target prices for Johnson & Johnson (JNJ) stock over the next 12 months. Of the ratings received from 25 brokerage companies in a Bloomberg survey, 44% of analysts gave Johnson & Johnson a “buy” recommendation, and around 56% gave it a “hold.” None of the analysts gave the company a “sell” rating.
The table above lists the 15 brokerage firms that provided target prices for Johnson & Johnson for the next year. The consensus 12-month target price for the company is $128.20, amounting to a 6.9% return potential. Johnson & Johnson’s price was $119.90 on August 29, 2016.
Analysts’ 12-month target prices
On August 17, 2016, Piper Jaffray gave Johnson & Johnson a one-year target price of $106, the lowest of all the target prices provided. This target implies an approximate return of -11.6% over the next 12 months.
Among the large investment banks, Morgan Stanley gave Johnson & Johnson a one-year target price of $128. That implies a return potential of 6.7% over the next 12 months.
The highest one-year target price of $145, provided by Argus Research, represents a return potential of ~20.9%. Goldman Sachs provided a one-year target price of $125, which represents a return potential of ~4.2% over the next year.
Peers Medtronic (MDT), Zimmer Biomet Holdings (ZBH), and Becton Dickinson (BDX) have average broker target prices of $94.80, $140.70, and $183.50, respectively. These imply returns of 8.4%, 7.7%, and 3.5%, respectively, in the next 12 months.
To gain exposure to Johnson & Johnson, you could consider investing in the SPDR S&P 500 ETF (SPY), which has a ~1.7% exposure to Johnson & Johnson.