J.P. Morgan analyst Chris Schott has maintained their neutral stance on JNJ stock, giving a Hold rating on June 26.
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Chris Schott has given his Hold rating due to a combination of factors influencing Johnson & Johnson’s current and future performance. While the company’s underlying business is seen as well-positioned to achieve over 5% sustained top-line growth, particularly through its Innovative Medicines segment and MedTech portfolio, there are challenges that temper this optimism. The ongoing erosion of Stelara due to biosimilar competition is expected to impact growth, and the talc litigation continues to pose a significant overhang, despite being manageable for a company of JNJ’s size.
Furthermore, while JNJ’s sales and EPS forecasts for the year are slightly above the company’s guidance, driven by favorable foreign exchange trends and reduced tariff impacts, these positive factors are balanced by the anticipated headwinds. The pharmaceutical portfolio is expected to remain flat year-over-year, with specific drugs like Stelara facing significant declines. These mixed signals contribute to a cautious outlook, justifying the Hold rating as the company navigates both opportunities and risks.
Schott covers the Healthcare sector, focusing on stocks such as Pfizer, Regeneron, and Teva Pharmaceutical. According to TipRanks, Schott has an average return of 1.0% and a 49.52% success rate on recommended stocks.
In another report released on June 26, Wells Fargo also maintained a Hold rating on the stock with a $170.00 price target.