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Wall Street Analysts Are Mostly Positive about Johnson & Johnson

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Aug. 18 2020, Updated 9:26 a.m. ET

Recent developments

In June, Johnson & Johnson (JNJ) accepted a binding offer from Platinum Equity to acquire its LifeScan business for ~$2.1 billion. LifeScan is a global leader in manufacturing blood glucose monitoring devices and manufactures the OneTouch brand. LifeScan estimates that more than 20.0 million individuals worldwide depend on the OneTouch brand of products for the management of diabetes.

In June, Johnson & Johnson received a binding offer from Fortive Corporation to acquire its Advanced Sterilization Products for ~2.8 billion, including $2.7 billion of cash proceeds from Fortive Corporation. Advanced Sterilization Products is a division of Ethicon Inc. 

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Analysts’ recommendations

Of the 22 analysts that tracked Johnson & Johnson in June, five recommended a “strong buy,” and six recommended a “buy.” Eight analysts recommended a “hold,” two recommended a “sell,” and one analyst recommended a “strong sell.”

On June 27, Johnson & Johnson had a consensus 12-month target price of $143.57, representing an ~18.1% return on investment over the next 12 months.

Peers’ ratings

Of the 22 analysts that tracked Pfizer (PFE) in June, 12 recommended a “buy,” eight recommended “hold,” and two analysts recommended a “strong sell.” 

Of the 20 analysts that tracked Eli Lilly (LLY) in June, 11 recommended a “buy,” eight recommended a “hold,” and one analyst recommended a “sell.”

Of the 21 analysts that tracked Bristol-Myers Squibb (BMY) in June, seven recommended some form of a “buy” rating, 12 analysts recommended a “hold,” and two suggested a “sell.”

On June 27, Pfizer (PFE) had a consensus 12-month target price of $39.86 for an ~10.1% return on investment over the next 12 years. Eli Lilly had a consensus 12-month target price of $91.26, which represents an ~7.8% return on investment over the next 12 years.

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