文档介绍：HEALTHCARE
Medi cal Technology
San dra J. Hollenhorst
Johnson & Johnson (952) 847-6940
Bruce D. Jackson
(952) 847-6941
April 12, PANY ANALYSIS
$120 35,000
Johnson & Johnson $100 30,000
$80 25,000
20,000
JNJ ($)—NYSE $60
15,000
Rating: STRONG BUY/SBI/(Low Risk) $40 10,000
$20 5,000
12-Month Price Target: $122 $0 0
4/6/00 8/7/00 12/5/00 4/6/01
Earnings Per Share P/E Ratio Ind. Shs. Market 52-Wk.
2000A 2001E 2002E 2001E 2002E Div. Yield Out. (M) Cap. Range
$ $ $ $ % 1, $128,911M $105-72
Fiscal year ends December 31. Priced as of the close on April 11.
Ini ti ating Cov er age With A Strong Buy Rating
And Price Tar get Of $122
Johnson & John son of New Bruns wick, NJ is a world wide leader in the devel op -
ment, manu fac ture and mar ket ing of healthcare products. With approx i mately 100,000
peo ple oper at ing in more than 175 coun tries, J&J is one of the larg est and most di ver si -
fied med i pa nies in the world.
• We are ini ti at ing cov er age of Johnson & John son with a Strong Buy rat ing and a
one-year price tar get of $122 based on a 32 multi ple to our 2001 EPS esti mate of
$. We are also desig nat ing the stock as our Sin gle Best Idea.
• pany is ex pected plete the ac qui si tion of ALZA Corp.(AZA:$43;
Hold by Pruden tial Se cu ri ties an a lyst Timo thy Ander son) in the third quar ter of
2001, which is not in cluded in our es ti mates. On a pro forma basis, our EPS es ti mate
would be $ with a price tar get of $120 us ing the same mul ti ple. We ex pect to
update our es ti mates af ter the trans ac tion pleted.
• J&J is one of the lead ing pa nies in the world with three major seg -
ments: Pharma ceu ti cal, Pro fes sional (de vices and diag nos tics), and Consumer. New
prod ucts for rheu ma toid arthri tis, Alz hei mer’s and cor o nary ar tery disease rep re sent
growth drivers for pany.
• Reve nue in 2000 was up %