Analyst Larry Biegelsen from Wells Fargo maintained a Hold rating on Johnson & Johnson and keeping the price target at $170.00.
Don’t Miss TipRanks’ Half-Year Sale
- 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.
Larry Biegelsen has given his Hold rating due to a combination of factors including the reasonable expectations for Johnson & Johnson’s Q2 performance, particularly in the MedTech sector where growth is anticipated to improve. However, the pharmaceutical segment faces challenges due to Medicare Part D redesign and Stelara’s loss of exclusivity, which introduces some uncertainty. Management’s confidence in the 2025 outlook is a positive sign, driven by strong performance in certain products and expected improvements in MedTech execution and new launches.
Despite the attractive valuation of JNJ’s stock, which trades at a significant discount to the S&P 500, Biegelsen remains cautious due to the ongoing risks associated with pharmaceutical tariffs. The potential for some EPS upside from reduced tariff and FX headwinds is noted, but these factors do not fully mitigate the uncertainties. As a result, the Hold rating reflects a balanced view of the potential growth opportunities and the existing risks.
In another report released on July 1, J.P. Morgan also maintained a Hold rating on the stock with a $185.00 price target.
JNJ’s price has also changed slightly for the past six months – from $144.190 to $156.010, which is a 8.20% increase.