Johnson & Johnson’s Promising Outlook: Strong Q1 2025 Performance and Strategic Growth Initiatives Justify Buy Rating

Asad Haider, an analyst from Goldman Sachs, maintained the Buy rating on Johnson & Johnson (JNJ – Research Report). The associated price target remains the same with $172.00.

Asad Haider has given his Buy rating due to a combination of factors that highlight Johnson & Johnson’s strong performance and promising outlook. The company’s first-quarter results for 2025 showed a slight revenue increase, driven by significant growth in its Innovative Medicines division. Notably, products like Carvykti and Darzalex exceeded expectations, attributed to market share gains and overall market expansion. Additionally, Tremfya performed well, surpassing consensus despite some challenges.
Furthermore, Johnson & Johnson has raised its full-year operational sales guidance, reflecting the positive impact of its recent acquisition of Intra-Cellular. While gross margins fell short, EBIT margins were favorable due to reduced R&D and SG&A expenses, showcasing the company’s financial flexibility. The management’s optimistic sales targets for key pharmaceutical products in the coming years also support the Buy rating, as they indicate potential for substantial growth beyond current market expectations.

In another report released yesterday, TD Cowen also maintained a Buy rating on the stock with a $185.00 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.