DJ J&J May Make a Big Move Sooner Than Later -- Market Talk
10:20 ET - After 2 years of underperforming healthcare stocks, Goldman Sachs says Johnson & Johnson (JNJ) has myriad ways to boost shares and thinks something is bound to happen sooner than later. So it ticks up its P/E multiple to 17 from 16, in the process boosting its price target $10 to $112 and upgrading the company from sell. The investment bank notes it's been advocating a JNJ breakup since 2012 as the company "is sitting on a significant amount of trapped value." JNJ launched a $10B stock-buyback effort in October, but Goldman says the company "needs to be more active with its strategy in order to catch up with peers' bolder strategic moves." That includes possibly hiving off some operations--consumer, biopharma or medical devices--or borrowing to repurchase stock. JNJ is flat at $107.71.