Johnson & Johnson (JNJ) transition underway, UBS assesses upcoming analyst day

UBS maintained Johnson & Johnson (NYSE: JNJ) at Buy with a $180 per share price target on Friday in its analyst day preview note.

The firm said it expects the company to reiterate its pharma guide, while its MedTech guide will at least be in line with market growth.

"Led by new management, the shift is underway to transition JNJ into a more innovative, higher growth, and nimble business," said UBS analyst Danielle Antalffy. "With the spinout of the Consumer franchise now in the rear-view mirror, focus falls on management's expectations on the rest of the business ahead of JNJ's Enterprise Business Review on December 5th."

UBS also anticipates JNJ management will give some commentary on its capital allocation strategy, as "the company highlighted key priorities following the August 30th guidance update post-Kenvue -- noting that organic growth business needs remain highest priority, with free cash flow generation another area of focus."

They also expect comments on the company's broader P&L targets and the financial profile of the new JNJ.

By Sam Boughedda

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