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Johnson & Johnson's Synthes Deal Revives Foreign Tax Debate

To be seen is whether J&J's stock swap in its acquisition of Synthes will spur similar moves by other corporations or a backlash by the IRS or federal government. What is clear is that the deal and its structuring is providing a lift to the shares of J&J.

In Wednesday trading, J&J shares rose over 2% to $64.45 on an improving earnings outlook and analyst upgrades.

Notably, JPMorgan analysts led by Michael Weinstein, raised their rating of J&J's stock to overweight for the first time since the financial crisis hit a boiling point nearly four years ago.

Weinstein highlighted J&J's newly hired chief executive Alex Gorsky and its pharmaceutical growth on the launch of products like Zytiga, Incivo, and Edurant as keys to the company's improving outlook and an expected turn from a share underperformance in recent years. The analyst raised his price target on shares to $74 from $69, in the upgrade.

For more on Johnson & Johnson, see TheStreet's portfolio of the highest yielding drug stocks.

-- Written by Antoine Gara in New York
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