On Monday, Guggenheim maintained a Neutral rating on Johnson & Johnson (NYSE:JNJ) but increased the stock's price target from $162.00 to $166.00. The adjustment follows the release of the company's fourth-quarter 2024 results, which reported sales of $22.5 billion and earnings per share (EPS) of $2.04. These figures were in line with or slightly exceeded the expectations of analysts and investors.
The firm's analyst highlighted Johnson & Johnson's performance, including the attainable initial guidance for 2025, despite new competition from Stelara biosimilars in the U.S. market. The analyst noted the strength of the company's Innovative Medicine side, particularly the multiple myeloma franchise with products such as Darzalex, Carvykti, Tecvayli, and Talvey. Additionally, Spravato achieved a milestone by surpassing $1 billion in annual sales and receiving approval as the first monotherapy for treatment-resistant depression.
The recent acquisition of ITCI is expected to enhance Johnson & Johnson's presence in the mental health sector, with the transaction's completion anticipated in the second quarter of 2025. Guggenheim's report also mentioned the firm's intention to monitor Johnson & Johnson's pipeline progress in oncology, immunology, and neuroscience. The ability to sustain mid-single-digit growth and manage the impact of Stelara biosimilars on the company's financials will be key areas of focus.
Furthermore, the analyst expressed interest in how Johnson & Johnson will address upcoming challenges, including the effects of Stelara biosimilars on its revenue and profit margins, as well as developments in the ongoing talc litigation. The revised price target of $166 is derived from a Discounted Cash Flow (DCF) analysis, reflecting a cautiously optimistic outlook as Johnson & Johnson navigates through its near-term challenges and works to deliver on its Innovative Medicine pipeline promises.
In other recent news, Johnson & Johnson has been in the spotlight following the release of its fourth-quarter results and future guidance. Barclays (LON:BARC) analyst, Matt Miksic, raised the stock target for the company to $166, citing solid performance in the pharmaceutical division and consistent growth across its Pharma and MedTech portfolios. The company's management also provided a robust guidance for 2025, predicting an organic sales growth between 2.0% and 3.0%. The EPS guidance for 2025 is set at $10.50 to $10.70, an approximate 6% increase at the midpoint.
Other firms have also adjusted their price targets for Johnson & Johnson. Bernstein SocGen Group lowered its target to $158, Stifel reduced its target to $155, and BofA set a new target at $159. These adjustments came after Johnson & Johnson reported an 11% year-over-year decline in adjusted EPS, but a 2% beat on the anticipated $1.99. The company also projected operational sales growth between 2.5% and 3.5% for 2025.
In other recent developments, defensive stocks including Johnson and Johnson registered gains in the latest trading session amid shifts in the market due to the emergence of DeepSeek, a low-cost Chinese AI model. These are the latest developments in the financial market.
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