Jim Cramer: Johnson & Johnson stock could go to $200

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Johnson & Johnson stock (NYSE: JNJ) has recovered about 10% in less than a month but CNBC’s Jim Cramer is convinced there’s a lot more where that came from.

Cramer’s outlook on the Johnson & Johnson stock

According to the Mad Money host, JNJ could be a $200 stock, which means another 15% upside from here. This morning on CNBC’s “Squawk on the Street”, he said:

Over the medium term, people want to own drug stocks, medical device stocks, and they want consumer products. Johnson & Johnson is giving them all three. I wish my charitable trust owned it.

Cramer is also bullish on JNJ’s plans of splitting into two separate publicly traded companies; one focused on medical devices and pharmaceuticals, and the other on consumer products.

JNJ outperforms when Nasdaq takes a hit

Historically, as per Cramer, stocks like Johnson & Johnson have done well at times of significant risk-off in the Nasdaq Composite. The tech-heavy index is down 20% YTD at present.

Look at what happened in April of 2000. Nasdaq started going down and SPX started going up. It was the beginning of tremendous period of outperformance for the drug stocks, of which I mentioned JNJ is the one you’ve got to buy. It’s what works in this environment.

The ongoing sell-off in Nasdaq is related to the Ukraine war and inflation that climbed again to 7.9% in February.

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