Deutsche Bank Starts Johnson & Johnson (JNJ) at Hold; Some Upside But Mot Enough

Deutsche Bank initiates coverage on Johnson & Johnson (NYSE: JNJ) with a Hold. PT $73.

Deutsche analyst says, "We believe J&J's pharma pipeline is well understood and do not see any major differences between our forecast and consensus. The exit of coronary stents makes sense but may pressure near-term sales and earnings. We are cautious on the pending Synthes deal. The worst is likely behind Consumer OTC as J&J returns products to market but rebating likely required and private labels continue to pressure. Based on a sum-of-the-parts valuation, we see some upside but not enough to warrant a more positive stance given our inline EPS outlook."

"We believe the Consumer OTC business is likely to improve with easy comps and as products come back to market, but higher rebating is likely and private labels will continue to pressure results."

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 $67.92 yesterday.

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