Johnson & Johnson: stock benefits from UBS' positive opinion

(CercleFinance.com) - Johnson & Johnson shares are bucking the downward trend on Wall Street on Friday, thanks to a rating upgrade from UBS, which sees the American healthcare giant exceeding market expectations.


A few minutes after the opening, J&J shares rose by 0.9%, while the S&P 500 index was down 0.2% at the same time.

UBS explains that it has upgraded its rating on the stock from 'neutral' to 'buy' ahead of the group's next investor day, to be held on Tuesday December 5.

In its note, the broker says it is increasingly optimistic about the Group's pharmaceutical activities, and forecasts growth for the medtech division in line with consensus, i.e. around 15%.

With such an undemanding valuation at current levels, including the risks associated with the talc file, we consider J&J to be a leading diversified healthcare player in view of the company's commitment to innovation", he concludes.

It has raised its target price from $167 to $180.


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