Johnson & Johnson is weighing a potential sale of DePuy Synthes for about US$20b, a move that has put the company back in focus for investors watching how management reshapes its MedTech footprint and capital allocation priorities. The shares sit at US$270.22, with a 1-day share price return of 1.10%, a 90-day share price return of 18.32%, a year-to-date share price return of 30.32% and a 1-year total shareholder return of 58.65%. The most followed valuation narrative pegs fair value at $270.59, almost exactly in line with the latest close, while analysts carry a consensus price target of $270.59, with the most bullish at $305.0 and the most bearish at $190.0. The SWS DCF model points to a future cash flow value of $364.57, implying the stock trades at a sizeable discount. Johnson & Johnson still faces real pressure from STELARA's loss of exclusivity and ongoing talc litigation, either of which could undercut the current fair value story.
Johnson & JohnsonJ&J is weighing a roughly US$20b sale of DePuy Synthes, a portfolio/capital-allocation move whose net effect is unclear.
