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Analyst Update: Danaher Corporation, Harley-Davidson Inc, and Johnson & Johnson

Analysts revised their ratings and price targets on Danaher Corporation (DHR), Harley-Davidson Inc (HOG), and Johnson & Johnson (JNJ)

Jul 5, 2016 at 2:51 PM
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Analysts are weighing in on industrial manufacturer Danaher Corporation (NYSE:DHR), motorcycle maker Harley-Davidson Inc (NYSE:HOG), and Dow stock Johnson & Johnson (NYSE:JNJ)Here's a quick roundup of today's brokerage notes on DHR, HOG, and JNJ.

  • DHR is up 2.3% at $79.35 and earlier hit a record high of $80.08, as a price-target hike to $95 from $91 at Janney Montgomery Scott in the wake of the firm's completed Fortive Corp (NYSE:FTV) spinoff overshadows other lackluster analyst attention. Citigroup reinstated coverage with a "neutral" rating and an $81 price target, while Goldman Sachs initiated coverage with a "neutral" assessment and a $74 price target. Also, Morgan Stanley slashed its target price to $83 from $106. More generally, though, the brokerage crowd remains extremely upbeat toward Danaher Corporation, with 13 of 17 analysts handing out a "buy" or better opinion -- and not a single "sell" rating in sight.
  • Just a session after exploding higher on buyout buzz, HOG has fallen back down to earth. Specifically, the stock has tanked 11.4% to trade at $48.08 -- and landed on the short-sale restricted list -- after UBS and Baird cut their assessments to "neutral," with the latter calling last Friday's speculation "uncorroborated." Unable to salvage the session is BMO, which lifted its price target on Harley-Davidson Inc to $54 from $50. While short selling isn't a possibility today, plenty of bearish traders have shorted the stock in recent weeks. During the last two reporting periods, short interest on HOG swelled 22.4%, and currently represents over 16% of its float -- or nearly three weeks' worth of pent-up buying power, at the stock's typical trading levels.
  • JNJ has picked up 1.2% at $122.76 on the back of Independent Research, which raised its price target to $123 from $115. This positive note is overshadowing a $70 million verdict against Johnson & Johnson subsidiary Janssen Pharmaceutical, due to the disfiguring effects of antipsychotic drug Risperdal. In fact, the stock earlier hit a record high of $123.23. If JNJ shares continue to rally, bearish options traders could be forced to the exits -- potentially creating tailwinds. During the last four weeks at the International Securities Exchange (ISE), Chicago Board Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX), speculators have bought to open more than double the number of puts as calls.

For other stocks in analysts' crosshairs, read Analyst Upgrades: Tesla Motors Inc, Mobileye NV, and Cyberark Software Ltd and Analyst Downgrades: Apple Inc., Netflix, Inc., and Illumina, Inc.

 

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