Johnson & Johnson (JNJ) would be worth more if it split into three companies than it is worth as one conglomerate, writes Goldman Sachs analyst Jami Rubin. “There are several strategies through which we think new CEO Alex Gorsky can generate higher returns for JNJ; however, we see a break-up (into Pharma, Consumer, and Medical Devices and Diagnostics) offering the most potential for upside.” For now this is just one analyst thinking out loud: Rubin acknowledges that “interviews with Mr. Gorsky indicate his preference for getting bigger, not smaller.”
