Johnson & Johnson (JNJ) stock jumped over 6% yesterday after the healthcare giant delivered impressive Q2 FY25 results, beating estimates on both revenue and profit. The company also raised its full-year EPS outlook to a range of $10.80 to $10.90, up from its earlier estimate of $10.50 to $10.70. Building on this momentum, analyst Rick Wise of Stifel Nicolaus raised his price target to $150 from $130, driven by stronger signs of growth ahead. However, he maintained a cautious stance on JNJ due to ongoing cost concerns.
Elevate Your Investing Strategy:
- Take advantage of TipRanks Premium at 50% off! Unlock powerful investing tools, advanced data, and expert analyst insights to help you invest with confidence.
- Make smarter investment decisions with TipRanks' Smart Investor Picks, delivered to your inbox every week.
Analyst’s Opinion about JNJ Stock
Wise remained encouraged by the company’s “top line growth acceleration” and upbeat revenue guidance. The company now expects adjusted operational revenue growth of around 3.5%, up from the previous 2.5% estimate. According to the analyst, this revision reflects growing confidence in the company’s product pipeline, which includes several upcoming launches.
He also noted that JNJ has lowered its expected tariff hit, as it now expects tariffs to cost $200 million in 2025, down from the earlier estimate of $400 million. Wise believes this gives the company more room to support profit growth. However, he flagged concerns about cost leverage amid broader macro pressures.”
Further, the company raised its full-year EPS forecast to a range of $10.80–$10.90, up from $10.50–$10.70. Wise believes the robust EPS guidance is driven by favorable currency, “top-line strength, and a lower expected tariff impact.”
Despite these positives, Wise maintained his Hold rating. He explained that while the updated guidance supports a higher valuation, the stock already reflects much of the expected growth.
Is JNJ a Good Stock to Buy?
According to TipRanks, JNJ stock has received a Moderate Buy consensus rating, with six Buys and nine Holds assigned in the last three months. The average JNJ stock price target is $173.43, suggesting a potential upside of 5.25% from the current level.
