Morgan Stanley analyst Terence Flynn maintained a Hold rating on Johnson & Johnson today and set a price target of $176.00.
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Terence Flynn’s rating is based on a combination of factors that reflect both positive developments and ongoing uncertainties for Johnson & Johnson. The company reported a strong second quarter, leading to an upward revision in its revenue and earnings per share guidance for 2025. This includes expectations of higher sales growth in its Pharmaceutical and MedTech segments in the latter half of the year. However, despite these positive adjustments, there remain concerns about potential future challenges, such as limited visibility on pharmaceutical tariffs and pricing regulations.
Looking further ahead, Johnson & Johnson anticipates stronger revenue growth in 2026, driven by new product launches and label expansions. The company also expects its global effective tax rate to increase due to changes in the statutory rate on foreign earnings. While the company is optimistic about achieving or exceeding its long-term growth targets, particularly in the oncology sector, these projections are contingent on several factors, including the performance of key assets like TAR-200. These mixed signals contribute to Flynn’s decision to maintain a Hold rating on the stock.
In another report released today, Stifel Nicolaus also maintained a Hold rating on the stock with a $165.00 price target.