BTIG Downgrades Johnson & Johnson, Admits Buy Thesis 'Had Some Hits & Misses'

BTIG analyst Dane Leone likes Johnson & Johnson JNJ and for good reason. Shares of the pharmaceutical firm have gained just over 11 percent year-to-date. The recent plateau in price appreciation, though, has broken Leone's conviction for a Buy recommendation.

After the market close on Thursday, Leone downgraded Johnson & Johnson to Neutral citing dwindling confidence "that the part of our Buy thesis regarding Medical Devices M&A will pan out near-term."

The Mia Culpa according Leone was the dampened hope Johnson & Johnson would execute transformational Medical Device M&A following Edwards Lifesciences EW. Further dampening the upside potential for Johnson & Johnson, Leone said areas of weakness in consumer products has offset the rebound in Over-The-Counter growth.

Shares of Johnson & Johnson closed Thursday's session up 0.49 percent at $105.59.