Wells Fargo Upgrades Johnson & Johnson (JNJ) to Outperform; Pharma Pipeline Moves To Forefront As Consumer Risk Dissipates

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Wells Fargo upgraded Johnson & Johnson (NYSE: JNJ) from Market Perform to Outperform. Valuation range increased from $67-68 to $70-72.

Wells analyst says, "We downgraded JNJ to Market Perform on 12/9/2010 because we saw significant risk of a second plant shut down in JNJ’s Consumer business. However, we believe that JNJ is poised to outperform over the next 12 months because (1) the Consumer division risks have been mitigated by the consent decree: (2) the company plans to launch 4 major new drugs in H2 2011--our favorable view of the pipeline and blockbuster opportunities remain unchanged; (3) potential acquisition of Synthes represents upside to estimates; and (4) the MD&D business should benefit from easier comps going forward."

For more ratings news on Johnson & Johnson click here and for the rating history of Johnson & Johnson click here.

Shares of Johnson & Johnson closed at $64.07 yesterday, with a 52 week range of $56.86-$65.62.

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