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JNJ on the Street: The Analyst View after the 2Q17 Results



Analysts’ views of JNJ

Johnson & Johnson (JNJ) reported its 2Q17 earnings results on July 18, 2017. In the latest Reuters survey of 22 brokerage firms, ten (~45%) analysts have rated the stock as a “buy,” while 12 (55%) have rated it a “hold.” None has rated the stock a “sell.”

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Target price

The above chart shows a recommendation summary for Johnson & Johnson over the next year. As of July 20, 2017, the stock’s consensus 12-month target price is $138.5, which amounts to a ~2.4% return potential based on its closing price of $135.2 on July 19, 2017.

According to analysts’ most recent recommendations, the lowest one-year target price for JNJ is $90. This target implies a return potential of about -33% over the next 12 months. The company’s highest one-year target price is $150, which implies a ~11% return potential over the next 12 months.

Peers Abbott Laboratories (ABT), Medtronic (MDT), and Zimmer Biomet Holdings (ZBH) have average broker target prices of $52.1, $92.4, and $136.4, respectively. These figures imply returns of 2.5%, 7.9%, and 5.3%, respectively, over the next 12 months.

Upgrades and downgrades

On July 20, 2017, Credit Suisse reinstated its coverage of Johnson & Johnson with an “outperform” rating and a target price of $148. After JNJ’s earnings release on July 18, 2017, Cowen & Company raised the stock’s price target from $143 to $147.

Deutsche Bank, Leerink Partners, and Raymond James also raised their target prices for JNJ after the company’s 2Q17 earnings release.

Series overview

In this series, we’ll take a look at Johnson & Johnson’s 2Q17 highlights, its Medical Device segment performance, and its key growth drivers. We’ll also discuss the company’s recent stock price performance.

Investors can gain exposure to JNJ by investing in the Vanguard Value ETF (VTV), which has 3.2% of its portfolio in the stock.

In the next part, we’ll examine Johnson & Johnson’s 2Q17 earnings highlights.


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