Goldman Remains Positive on Johnson & Johnson Despite FDA Ruling

Goldman Sachs has reiterated its US$68 price target on shares of Johnson & Johnson (JNJ), which represents upside of roughly 9%, despite news that the U.S. Food and Drug Administration has revised the labeling for one of the company's products.

Amgen Inc.'s (AMGN) Aranesp and Epogen, along with J&J's Procrit, are the popular anemia treatment drugs that are affected.

They must now include a boxed warning that reflects "the increased risk of mortality as well as life-threatening side effects," Goldman analyst Lawrence Keusch said in a research note. There are also changes to dosing and administration instructions.

Mr. Keusch expects the J&J will be able to manage the impact this will have on its business, and has kept its shares on his firm's 'Americas Buy List' and 'Americas Conviction Buy List.'

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