JP Morgan Reiterates Neutral on Johnson & Johnson

JP Morgan maintains its Neutral rating on Johnson & Johnson JNJ as the company reported fourth quarter results and guided below consensus for 2012. JP Morgan notes, "J&J issued 2012 EPS guidance of $5.05-$5.15, which compares to the Street consensus of $5.22. This is consistent with our view heading into the guide that Street numbers for J&J were too high, with the company likely to guide $0.10-$0.15 below consensus. The guidance range compares to our $5.10, but its worth noting that our model includes $0.05 dilution from Synthes – guidance does not – so we are on an adjusted basis at the upper end of the range (assuming Synthes moves the guidance down $0.05). Top-line guidance calls for organic sales growth of 3.5-5.5% (vs our 5.0%), offset by a 250bp Fx headwind." JNJ closed at $65 a share on Monday.