Johnson & Johnson’s stock climbed 2% in afternoon trade Tuesday, making it the biggest percentage gainer among Dow Jones Industrial Average components, after the drug and consumer products company was upgraded at Deutsche Bank, which said concerns about the outlook for its pharmaceutical business are overdone. Analyst Kristen Stewart raised her rating to buy, after being at hold since July 17, 2013, while maintaining her stock price target at $110, which is 18% above current levels. “While there are a number of patent expirations (including Remicade, which is significant) and risks related to the pipeline, we believe the depth of the pipeline can carry the company through,” Stewart wrote in a note to clients. She said the company’s active management of its business portfolios was a positive, as it was likely to become a growth driver. “While it may have a few more small outbound transactions, inbound ones are now likely as its balance sheet capacity provides the opportunity to enhance growth,” Steward wrote. The stock has lost 4.6% over the past three months, while the SPDR Health Care ETF has shed 12% and the Dow has dropped 8.8%. J&J’s stock is the most heavily weighted within the Health Care ETF.
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