So while revenue and sales "should come in relatively in line with expectations," he thinks a lot of the improvements J&J is doing for efficiency "should really help the bottom line."
J&J reports second-quarter earnings early Tuesday.
The medical and consumer products company is getting its three divisions back on track, Conover said, which is why he sees J&J shares moving to $75 over the next two to three years.
But he also expects that recalls of such familiar products as Tylenol, Sudafed and Rolaids over the past 15 months will weigh on total growth, particularly in the consumer division, for the next two to three quarters into 2012.
Conover's recent bullish prognosis on the state of the pharma sector can be viewed here.
______________________________
CNBC Data Pages:
______________________________
J&J — Peers and Rivals:
Novartis
Baxter International
Boston Scientific
St. Jude Medical
_____________________________
Disclosures:
Neither Damien Conover or Morningstar own shares or have a banking relationship with JNJ.
Disclaimer