Analyst Tim Anderson from Bank of America Securities reiterated a Hold rating on Johnson & Johnson (JNJ – Research Report) and keeping the price target at $171.00.
Tim Anderson has given his Hold rating due to a combination of factors affecting Johnson & Johnson’s current financial and legal situation. The recent rejection of JNJ’s bankruptcy plan by a U.S. Bankruptcy Court has left the company with ongoing legal challenges, as they plan to address individual claims in court rather than pursuing a mass tort settlement. This decision, while freeing up $7 billion in reserves, means that the company may continue to face negative headlines from jury verdicts, which could impact investor sentiment.
Additionally, Anderson notes that JNJ’s revenue and earnings per share growth are only average compared to its big pharma peers, despite its above-average valuation. This suggests that the stock is fairly valued at its current price. The combination of these legal uncertainties and average growth prospects supports the Hold rating, as the stock does not present a compelling opportunity for significant upside in the near term.
In another report released today, Barclays also maintained a Hold rating on the stock with a $166.00 price target.
JNJ’s price has also changed slightly for the past six months – from $161.990 to $153.250, which is a -5.40% drop .