Johnson & Johnson: shares down on UBS downgrade

(CercleFinance.com) - The Johnson & Johnson share is down 1.
1% on Tuesday, one of the worst performers on the DJIA index, after UBS downgraded the stock from "buy" to "neutral" after it outperformed the S&P 500 index by 17% year-to-date.

While acknowledging that J&J may be considered as a defensive stock, the broker sees a more "balanced" risk/reward.

Indeed, the stock may be a relative outperformer if the pandemic extends significantly into 2021, despite the risk to consensus, but UBS also believes that J&J will underperform if the economy improves to the benefit of other more cyclical companies.

The broker has trimmed its target price from 163 dollars to 160 dollars.

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