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Investing.com - Erste Group upgraded Johnson & Johnson (NYSE:JNJ) stock rating from Hold to Buy on Wednesday.
The research firm cited Johnson & Johnson’s higher operating margin and return on equity compared to competitors as key factors in the upgrade decision.
Erste Group noted that Johnson & Johnson recently raised its outlook for both sales and earnings growth, with earnings per share expected to increase by nearly 9% year-over-year in 2025.
The firm considers Johnson & Johnson stock attractively valued based on its price-to-earnings ratio.
Erste Group expects Johnson & Johnson’s stock price to rise further in the medium term, driven by the company’s improved growth prospects.
In other recent news, Johnson & Johnson has received approval from the European Commission for its Darzalex subcutaneous formulation as a monotherapy for adults with high-risk smoldering multiple myeloma. This approval marks the first treatment available for this patient group, addressing a significant unmet clinical need. Additionally, the company has submitted a New Drug Application to the U.S. Food and Drug Administration for icotrokinra, an oral peptide aimed at treating moderate to severe plaque psoriasis in patients aged 12 and older. This submission is backed by data from four Phase 3 clinical trials showing positive results for skin clearance.
In terms of financial evaluations, RBC Capital has raised its price target for Johnson & Johnson to $185 from $181, maintaining an Outperform rating. This adjustment follows the company’s second-quarter performance, which surpassed expectations for both sales and earnings per share. UBS also increased its price target to $190 from $180, citing strong fundamentals and robust sales growth in the company’s innovative medicines portfolio. Meanwhile, Guggenheim adjusted its price target to $167 from $164, maintaining a Neutral rating. These developments reflect a positive outlook from analysts on Johnson & Johnson’s recent performance and future potential.
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