Analysts’ Opinions Are Mixed on These Healthcare Stocks: Johnson & Johnson (NYSE: JNJ) and Endologix Inc (NASDAQ: ELGX)

By Carrie Williams

Companies in the Healthcare sector have received a lot of coverage today as analysts weigh in on Johnson & Johnson (NYSE: JNJ) and Endologix Inc (NASDAQ: ELGX).

Johnson & Johnson (NYSE: JNJ)

In a report issued on May 18, Dane Leone from BTIG reiterated a Hold rating on Johnson & Johnson (NYSE: JNJ). The company’s shares closed last Friday at $127, close to its 52-week high of $129.

Leone observed:

“Yesterday, we attended JNJ’s Pharma day held in New Brunswick, NJ. The overarching theme of the day was the expectation that the Pharma business outgrows the IMS projected ~5% 5-year CAGR for branded drugs. Our model is significantly below such expectations, as we have reported growth of ~6.5% during 2017 falling to ~3.6% in 2018 and essentially flat through 2020. Our numbers may prove conservative given that we do not currently include new drug launches of esketamine, guselkumab and sirukumab. We remain Neutral, as we think that the Oncology landscape is becoming more complicated and the Immunology portfolio may underperform internal expectations as a new class of oral drugs comes to market.”

According to TipRanks.com, Leone is a 5-star analyst with an average return of 12.6% and a 70.2% success rate. Leone covers the Healthcare sector, focusing on stocks such as Corvus Pharmaceuticals Inc, Quest Diagnostics Inc, and Trillium Therapeutics.

Currently, the analyst consensus on Johnson & Johnson is Moderate Buy and the average price target is $134.86, representing a 6.2% upside.

In a report issued on May 12, Jefferies also reiterated a Hold rating on the stock with a $135 price target.
Endologix Inc (NASDAQ: ELGX)

In a report issued on May 18, Sean Lavin from BTIG reiterated a Buy rating on Endologix Inc (NASDAQ: ELGX), with a price target of $7. The company’s shares closed last Friday at $4.44, close to its 52-week low of $4.21.

According to TipRanks.com, Lavin is a 5-star analyst with an average return of 9.9% and a 56.4% success rate. Lavin covers the Healthcare sector, focusing on stocks such as Tactile Systems Technology, Trivascular Technologies, and Obalon Therapeutics Inc.

Currently, the analyst consensus on Endologix Inc is Hold and the average price target is $5.58, representing a 25.7% upside.

In a report issued on May 5, Oppenheimer also reiterated a Buy rating on the stock with a $10 price target.

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