Analysts on Wall Street Express Opinions on Johnson & Johnson Shares
Hello there! Let's dive into the world of healthcare with a giant, Johnson & Johnson (JNJ). With a whopping market cap of $372.9 billion, this New Brunswick, New Jersey-based powerhouse has its fingers in the pie of pharmaceuticals, medical technologies, and consumer health products. They're known for their knack for innovation, thanks to one of the industry's largest R&D budgets.
In the past year, JNJ has seen mixed performance. While it has clawed its way up by 3.8%, the broader S&P 500 Index has soared 10.2%. However, JNJ has managed to outshine the crowd, rising 7.2% year-to-date, outperforming the Index's 3.9% decline.
Diving deeper, JNJ has even outperformed the Health Care Select Sector SPDR Fund, which has dropped 1.9% over the same period. But let's not forget that shares took a tiny dip on Apr. 15 due to concerns about declining Stelara sales and the company's lowering of its full-year adjusted EPS forecast.
If you take a closer look at the Q1 2025 financials, JNJ reported better-than-expected adjusted EPS of $2.77 and revenue of $21.9 billion. Despite these impressive numbers, shares slid marginally over the announcement. The concerns? A 33.7% year-over-year drop in Stelara sales and the company's adjusted EPS forecast being lowered to $10.50 - $10.70 due to dilution from the Intra-Cellular Therapies acquisition. Additionally, uncertainties were stirred by the inclusion of costs related to new U.S. import tariffs under the Trump administration.
Looking ahead to the end of 2025, analysts predict a 6.2% year-over-year growth in JNJ's adjusted EPS, reaching $10.60. This confident forecast is backed by JNJ's strong earnings surprise history, with the company topping the consensus estimates in the last four quarters.
It's all about the ratings, you ask? Well, among the 23 analysts keeping an eye on the stock, the consensus rating is a "Moderate Buy". This score is based on 10 "Strong Buys", two "Moderate Buys", and 11 "Holds". Compared to three months ago, the bullishness has increased, with eight more "Strong Buy" ratings on the stock.
Morgan Stanley played its part, raising Johnson & Johnson's price target to $169 and maintaining an "Equal Weight" rating after a Q1 beat and updated 2025 revenue guidance. The firm highlighted new product cycles as a key factor offsetting Stelara declines, while noting that MedTech still faces tariff impacts, and pharma tariff risks remain hazy.
As it stands, JNJ is trading below the mean price target of $170.09. The Street-high price target of $185 implies a potential upside of 19.4% from the current price levels.
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Oh, and just in case you're curious, JNJ also announced its 63rd consecutive annual dividend hike to $1.30/share post-earnings, further demonstrating their long-term commitment to shareholders. If you want to learn more about JNJ's impressive financials and diversified business model, take a gander at the enrichment data I've shared below.
Fun Fact: Did you know that Johnson & Johnson has plans to invest over $55 billion in the United States between 2025 and 2029? Talk about a commitment to the home team!
- Johnson & Johnson (JNJ)'s stock has underperformed the S&P 500 Index in the past year, with a rise of 3.8%, while the Index surged 10.2%.
- Despite the drop in Stelara sales and lowering of its full-year adjusted EPS forecast, JNJ shares slid marginally after reporting better-than-expected Q1 2025 financials.
- Among the 23 analysts keeping an eye on the stock, the consensus rating for Johnson & Johnson is a "Moderate Buy", with 10 "Strong Buys", two "Moderate Buys", and 11 "Holds".
- Morgan Stanley raised Johnson & Johnson's price target to $169 and maintained an "Equal Weight" rating after a Q1 beat and updated 2025 revenue guidance, which implies a potential upside of 19.4% from the current price levels.
