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Why Jefferies Upgraded Johnson & Johnson

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On CNBC's "Power Lunch", Jefferies analyst Jeffrey Holford spoke about his upgrade of Johnson & Johnson (NYSE: JNJ).

He upgraded the stock to Buy and he increased its price target to $157 from $145. Holford sees the acquisition of Actelion as important and he thinks it's going to have a faster impact because Johnson & Johnson isn't taking all of its R&D infrastructure. The biggest driver of his Buy rating are the products that are already in the company, especially the oncology division.

Holford added that Talcum powder lawsuits shouldn't have a major impact on the company, because the big studies show no connection to cancer. The company has a strong balance sheet and it can deal with significant liabilities. He also thinks Johnson & Johnson would be interested in buying Pfizer's (NYSE: PFE) consumer health business.

Latest Ratings for JNJ

DateFirmActionFromTo
Jul 2018Goldman SachsUpgradesSellNeutral
Jun 2018BernsteinInitiates Coverage OnMarket Perform
Apr 2018Credit SuisseMaintainsOutperformOutperform

View More Analyst Ratings for JNJ
View the Latest Analyst Ratings

Posted-In: CNBC Jefferies Jeffrey HolfordAnalyst Color Upgrades Price Target Analyst Ratings Media

 

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