U.S. stock futures rise on Fed cut bets, strong earnings
Investing.com - Goldman Sachs raised its price target on Johnson & Johnson (NYSE:JNJ) to $186.00 from $185.00 while maintaining a Conviction Buy rating.
The firm cited growing confidence in two key new pharmaceutical product cycles as the basis for the adjustment. Goldman Sachs specifically highlighted Inlexzo, recently FDA-approved for bladder cancer, which has been priced at a higher annual gross level than anticipated. This development adds to JNJ’s already impressive pharmaceutical portfolio, which has helped drive a 23.33% year-to-date return.
The investment bank also noted promising data presented at the European Academy of Dermatology and Venereology Congress regarding icotrokinra, JNJ’s oral IL-23 psoriasis pill expected to receive approval next year. Goldman Sachs views the drug as having "best-in-class efficacy among oral PsO therapies."
Goldman Sachs attributed JNJ’s year-to-date outperformance to "impressive execution" across the company’s Innovative Medicines business, evidenced by two consecutive earnings reports driving sales and earnings revisions higher compared to pharmaceutical peers. The company’s strong execution is reflected in its robust financials, with revenue reaching $90.63 billion and maintaining a healthy gross margin of 68.41%.Want deeper insights into JNJ’s financial health and future potential? InvestingPro subscribers get access to over 30 additional premium insights and detailed financial metrics.
The firm expects these emerging product cycles to continue propelling the stock in 2026, with both Inlexzo and icotrokinra representing key blockbuster opportunities for Johnson & Johnson’s strengthening pharmaceutical franchise.
In other recent news, Johnson & Johnson’s experimental oral psoriasis drug, icotrokinra, has shown promising results in clinical trials. The drug demonstrated superior skin clearance compared to deucravacitinib in two Phase 3 studies, maintaining adverse event rates similar to a placebo. Additionally, the U.S. Food and Drug Administration has approved Johnson & Johnson’s INLEXZO for treating bladder cancer, marking it as the first intravesical drug-releasing system for extended delivery in the bladder. Guggenheim maintained a Neutral rating on Johnson & Johnson, with a $167 price target, following the approval. Meanwhile, Wolfe Research has raised its price target for the company to $195 from $175, citing increased confidence in upcoming litigation outcomes. In corporate developments, Johnson & Johnson has appointed John Morikis, former CEO of Sherwin-Williams, to its Board of Directors. Morikis brings extensive experience from his tenure at Sherwin-Williams, where he led significant global expansion.
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