Jefferies Boosts PT on J&J (JNJ) Following Q2 Results; Watching 'Strategic Review,' Synthes Integration
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Price: $260.35 -0.66%
Rating Summary:
23 Buy, 11 Hold, 2 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 13 | Down: 14 | New: 11
Rating Summary:
23 Buy, 11 Hold, 2 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 13 | Down: 14 | New: 11
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Jefferies boosted its price target on Johnson & Johnson (NYSE: JNJ) from $75 to $76 on Wednesday, while keeping at Buy rating on the stock. The call comes following Johnson & Johnson's second-quarter 2012 earnings report, issued ahead of the bell Tuesday morning.
You might call what Jefferies sees for J&J a "James Bond+" outlook: shaken...and stirred.
For Q2 results, Jefferies notes that the numbers were in-line with consensus views. Strong results came from immunology, Invega Sustenna, and Orthopedics, which benefited from the Synthes merger. Offsetting gains were Cardiovascular Care, which had tougher comps, as well as weakness in the Nutritionals and OTC categories.
On being shaken, Jefferies said J&J's focus now turns to integration of Synthes and what comes from that strategic review it announced on its conference call.
The firm is positive on J&J in the OTC market for 2013.
Looking ahead, J&J management said first data from bapineuzumab Phase III will happen at the European Federation of Neurological Societies congress (8th-11th September). Jefferies also noted: "Multiple readouts for TMC435 in hepatitis C therapy are due in 2012/13, with presentations potentially at the AASLD congress (9th-13th November). We also look for the US regulatory decisions for Xarelto (recurrent VTE, Q4'12) and canagliflozin (type 2 diabetes, Q1'13)."
The firm sees J&J as "attractive" and "undervalued." However, recent numbers have cause Jefferies to trim some expectations: generally, top-line views for FY12 - FY17 have been cut zero percent to 1 percent, with non-GAAP EPS over the same period falling 1 percent to 2 percent. The firm noted that revenue estimates are now about 1 percent to 2 percent below the Street and non-GAAP EPS estimate are down 2 percent to up 4 percent from the Street.
For an analyst ratings summary and ratings history on Johnson & Johnson click here. For more ratings news on Johnson & Johnson click here.
Shares of Johnson & Johnson closed at $69.00 yesterday.
You might call what Jefferies sees for J&J a "James Bond+" outlook: shaken...and stirred.
For Q2 results, Jefferies notes that the numbers were in-line with consensus views. Strong results came from immunology, Invega Sustenna, and Orthopedics, which benefited from the Synthes merger. Offsetting gains were Cardiovascular Care, which had tougher comps, as well as weakness in the Nutritionals and OTC categories.
On being shaken, Jefferies said J&J's focus now turns to integration of Synthes and what comes from that strategic review it announced on its conference call.
The firm is positive on J&J in the OTC market for 2013.
Looking ahead, J&J management said first data from bapineuzumab Phase III will happen at the European Federation of Neurological Societies congress (8th-11th September). Jefferies also noted: "Multiple readouts for TMC435 in hepatitis C therapy are due in 2012/13, with presentations potentially at the AASLD congress (9th-13th November). We also look for the US regulatory decisions for Xarelto (recurrent VTE, Q4'12) and canagliflozin (type 2 diabetes, Q1'13)."
The firm sees J&J as "attractive" and "undervalued." However, recent numbers have cause Jefferies to trim some expectations: generally, top-line views for FY12 - FY17 have been cut zero percent to 1 percent, with non-GAAP EPS over the same period falling 1 percent to 2 percent. The firm noted that revenue estimates are now about 1 percent to 2 percent below the Street and non-GAAP EPS estimate are down 2 percent to up 4 percent from the Street.
For an analyst ratings summary and ratings history on Johnson & Johnson click here. For more ratings news on Johnson & Johnson click here.
Shares of Johnson & Johnson closed at $69.00 yesterday.
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