Goldman Sachs Lowers Estimates And PT On Johnson & Johnson

Goldman Sachs has published a research report on Johnson & Johnson JNJ and has lowered estimates on the company as a result of slow recovery on the company's MD&D and OTC businesses. In the report, Goldman Sachs writes "In 2010, JNJ's MD&D has slowed considerably due to the weak economy, particularly after the expiration of the Cobra subsidy in May. In line with our MedTech analysts' proprietary survey and channel checks (Project back fill to dominate 2011 hospital capex, December 14), we believe that it will take time for the business to recover, particularly as our economists do not expect US unemployment to ease meaningfully in 2011. We now model WW MD&D 4Q10 sales growth of 1.6% (previously 3.4%) and 2011 sales growth of 6.0% (from 6.6%)." Goldman maintains its Neutral rating but has lowered the price target from $60 to $59. Johnson & Johnson closed yesterday at $62.82.