Johnson & Johnson Stock: Fairly Valued with Neutral Outlook Amid Uncertain Growth Prospects

Bank of America Securities analyst Tim Anderson has maintained their neutral stance on JNJ stock, giving a Hold rating today.

Tim Anderson has given his Hold rating due to a combination of factors that suggest Johnson & Johnson’s stock is fairly valued at its current price. The company’s recent earnings slightly exceeded expectations, with a modest increase in revenue and earnings per share. However, the long-term growth prospects appear to be average when compared to the broader market, despite the stock trading at an above-average price-to-earnings multiple.
Additionally, the potential impact of tariffs and the company’s cautious stance on transfer pricing contribute to the uncertainty surrounding future performance. While the updated guidance for 2025 reflects some positive adjustments, such as the offset of ITCI acquisition dilution by favorable foreign exchange rates, these factors collectively support a neutral stance. Thus, the stock is considered to be appropriately priced, warranting a Hold recommendation.

According to TipRanks, Anderson is a 4-star analyst with an average return of 6.7% and a 63.01% success rate. Anderson covers the Healthcare sector, focusing on stocks such as Johnson & Johnson, Eli Lilly & Co, and Gilead Sciences.

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