Wells Fargo analyst Larry Biegelsen has reiterated their neutral stance on JNJ stock, giving a Hold rating yesterday.
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Larry Biegelsen’s rating is based on a combination of factors, including Johnson & Johnson’s solid second-quarter performance and the company’s raised guidance for 2025. The management has shown confidence in accelerating sales growth in the second half of the year and expects continued momentum in Innovative Medicine and MedTech sectors. Despite these positive indicators, the Hold rating reflects a cautious approach due to potential uncertainties, such as the upcoming Daubert decision in the talc litigation, which could impact the company’s legal standing.
Furthermore, while JNJ has raised its EPS guidance and demonstrated resilience against headwinds like foreign exchange fluctuations, the reinvestment of tariff savings back into the business suggests limited immediate impact on earnings. The company’s longer-term growth outlook remains strong, with expectations of exceeding sales targets in its Innovative Medicine segment and achieving significant milestones in its oncology franchise by 2030. However, the Hold rating suggests that while the company is on a positive trajectory, investors might want to wait for more clarity on these factors before making significant investment decisions.
According to TipRanks, Biegelsen is a 4-star analyst with an average return of 6.5% and a 55.80% success rate. Biegelsen covers the Healthcare sector, focusing on stocks such as Medtronic, Dexcom, and Abbott Laboratories.
In another report released yesterday, Bank of America Securities also maintained a Hold rating on the stock with a $161.00 price target.