Posted 9/18/2023, 4:58:39 AM

Johnson & Johnson Spins Off Consumer Health, Lowers Guidance; Modest Growth Expected

Johnson & Johnson recently spun off its consumer health division as Kenvue to focus on more lucrative pharma and medical technology businesses.
JNJ lowered 2023 EPS guidance due to Kenvue spin-off, now $10.00-$10.10 vs previous $10.70-$10.80.
Analysts forecast modest 4% EPS growth for JNJ over next 9 years, but author believes 5-5.5% is achievable.
Valuation suggests JNJ stock could reach $219 by 2031, a 36% increase representing 4% annualized growth.
JNJ is a good defensive stock for income/stability, but unlikely to deliver market-beating returns of 10%+ that author seeks.

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