Johnson & Johnsonsh (J&J) stock could soar by 20%, Barron's said in its report. According to the analysts, the growth would be on the back of operational improvements in the company’s medical equipment and consumer goods businesses.
The report said that investors started to pay attention to the US company after reduced concerns about competition for the J&J’s blockbuster Remicade drug.
Healthcare shares started to decline on the US exchanges after the US President-elect Donald Trump vowed to bring down drug prices.
The S&P 500's healthcare sub-index fell by 5% this year compared with the S&P 500 gain of 10%.
However, Barron's said that potential changes in drug prices may not touch J&J. On the contrary, the company could take advantage of Trump's plans to lower corporate taxes.
For the last week, shares of J&J closed 1.14% higher, coming in at $112.26 with its market value rising to $308.9 billion.
