Hold Rating for Johnson & Johnson Amid Mixed Outlook and Macroeconomic Challenges

Bernstein analyst Lee Hambright maintained a Hold rating on Johnson & Johnson (JNJ – Research Report) today and set a price target of $159.00.

Lee Hambright’s rating is based on a combination of factors, including Johnson & Johnson’s solid performance in the first quarter of 2025, where the company exceeded sales expectations despite macroeconomic challenges. The pharmaceutical segment showed strength, which helped offset weaknesses in the medical technology division. However, a significant gross margin miss was noted, although adjusted EPS still managed to surpass consensus due to effective cost control and favorable other income.
Despite maintaining its full-year 2025 EPS guidance, Johnson & Johnson faces challenges like tariff impacts, particularly from medical technology exports to China, which are expected to affect future earnings. The company’s current trading valuation is below its 10-year average P/E, but macroeconomic pressures and patent expiration risks in the pharmaceutical sector contribute to a mixed outlook. As a result, Lee Hambright considers the stock to be fairly valued at present, leading to a Hold rating.

In another report released today, Barclays also maintained a Hold rating on the stock with a $166.00 price target.

Based on the recent corporate insider activity of 28 insiders, corporate insider sentiment is negative on the stock. This means that over the past quarter there has been an increase of insiders selling their shares of JNJ in relation to earlier this year.