Nick Pitruzzello & Sean Walsh
Investment Analysis
JNJ Firm Report
3/30/20
Johnson & Johnson (NYSE: JNJ) is one of the world’s leading developers of medical
devices and pharmaceutical goods. It is undervalued compared to cash flow per share and
relative price strength. We expect the price to be around $153 per share in the coming years
from 2023-2025. The value line report had J&J’s price as 15 times cash flow per share. With this
calculation, we came up with a price of $153 exactly for 2020. The dividend yield for this stock
is 3.80 (3.00%). With everything going on the current SP is probably going to dip due to overall
market volatility, until supporting PR regarding recent business is released, in our opinion. J&J
has been involved in a lot recently which could help their stock, such as working with
government entities to develop a cure to the Coronavirus
JNJ has teamed up with BARDA the U.S Biomedical Advanced Research and
Development Authority to help find a vaccine to fight the coronavirus. J&J’s pharmaceutical
subsidiary Janssen is funding this research with co-fund and R&D capital from BARDA as well.
