Wells upgrades Johnson & Johnson to Overweight on reduced concerns

Wells Fargo analyst Larry Biegelsen upgraded Johnson & Johnson to Overweight from Equal Weight with a price target of $212, up from $170. The firm says its concerns around pharmaceutical tariffs, pricing risk and Stelara’s loss of exclusivity are now largely behind Johnson & Johnson. The stock’s valuation presents an attractive entry point, the analyst tells investors in a research note. J&J trades at a discount versus its five- and 10-year average discount to the S&P 500 Index, Wells points out. The firm sees potential upside to the company’s Pharma business, lower tariff and pricing risk, and investor confidence that J&J can grow through the Stelara exclusivity loss as moving the shares higher.