Shares of Johnson & Johnson (JNJ) were sinking nearly 2% in afternoon trading on Wednesday after analysts at Goldman Sachs downgraded the multinational consumer products conglomerate to "Sell" from "Neutral" with a $130 price target.

The bearish outlook on JNJ is predicated on pressure weighed on crucial products at the company, combined with a slowdown in growth at its Medical Devices unit, Goldman analyst Jami Rubin wrote in a note obtained by TheFly.

Rubin also contends that added strains on the consumer will result in below average, long-term growth potential at JNJ.

The analyst forecasts JNJ's sales adjusted earnings compound annual growth rate at between 5% and 7% versus the estimate of between 5% and 10% for the large-cap pharmaceutical sector. Consequently, Rubin concludes JNJ's valuation is "stretched" at current levels.

Watch the replay of Jim Cramer's full NYSE live show:


Don't miss these top stories on TheStreet:

More from Stocks

Either Respect Amazon When Investing or Risk Getting Run Over

Either Respect Amazon When Investing or Risk Getting Run Over

Amazon, Procter & Gamble, Southwest and Netflix - 5 Things You Must Know

Amazon, Procter & Gamble, Southwest and Netflix - 5 Things You Must Know

Time Warner's Jeff Bewkes: Department of Justice Theories Are 'Ridiculous'

Time Warner's Jeff Bewkes: Department of Justice Theories Are 'Ridiculous'

Just How Bad Is Facebook's Diversity Problem?

Just How Bad Is Facebook's Diversity Problem?

2 More Reasons to Sell All Your Stocks and Run Away

2 More Reasons to Sell All Your Stocks and Run Away