Morgan Stanley Sees Three Debate-Worthy Topics for Johnson & Johnson

In a report published Friday, Morgan Stanley analyst David R. Lewis reiterated an Equal-Weight rating on

. In the report, Morgan Stanley noted, “Ethicon investment is paying dividends. Covidien has been growing its surgery segments noticeably faster than J&J's, and while the gap did narrow in 1Q, it was on a noticeably easier comp. It's too early to say if J&J is gaining ground but the company believes it has taken 2.5 pts of US share in endocutters over the last four quarters. J&J has 8-10 upcoming launches, targeted at narrowing the performance gap in key areas such as energy. Surprisingly, management was more emphatic about its robotic strategy, which could be unveiled within 12 months.” Johnson & Johnson closed on Thursday at $100.96.