Morgan Stanley Comments on Johnson & Johnson

Morgan Stanley has published a report on Johnson & Johnson JNJ broadly commenting on the company. In the report, Morgan Stanley wrote, "We're not overly alarmed by 2H11 EBIT shortfall. Though the quarter does raise some questions on long-term leverage potential, the reduction in operating profit implied in updated guidance may reflect timing of near-term investments or an opportunistic decision to reinvest unanticipated upside from a lower tax rate. We continue to model EPS growth acceleration from 4.2% in 2011 to 8.0% in 2012 and 7.2% in 2013." Morgan Stanley rated Johnson & Johnson an Equal-weight and did not give a price target. Johnson & Johnson closed Tuesday at $66.72.