UPDATE: Bank Of America Reiterates On Johnson & Johnson On Likely EPS Headwinds

In a report published Wednesday, Bank of America analyst Bob Hopkins reiterated a Neutral rating on Johnson & Johnson (NYSE: JNJ), but lowered the price target from $106.00 to $99.00.

In the report, Bank of America noted, “JNJ reported a solid Q3, but also highlighted a number of likely EPS headwinds for 2015, including F/X and Olysio. We are reducing our EPS estimates for 2015/2016 to $6.11 and $6.49 (vs consensus of $6.27 and $6.78, respectively) due to these headwinds and our view that JNJ will not execute an outsized buyback in 2015 given the potential for cash outflows relating to ongoing ASR and pelvic floor litigations. The call also highlighted other potential long term competitive threats within pharma that may limit multiple expansion. We are lowering our PO to $99, which equates to 14.4x our new 2016 cash EPS estimate. For those looking for a defensive alternative within healthcare with more absolute upside, we recommend MDT.”

Johnson & Johnson closed on Tuesday at $97.01.