Guggenheim reiterates Buy rating on Johnson & Johnson stock

Published 08/10/2025, 12:42
Guggenheim reiterates Buy rating on Johnson & Johnson stock

Investing.com - Guggenheim maintained its Buy rating and $206.00 price target on Johnson & Johnson (NYSE:JNJ) stock in a research note released Wednesday.

The investment firm originally upgraded JNJ shares from Neutral to Buy and raised its price target from $167 to $206 on September 22. Guggenheim noted that its bullish stance has been well received by investors since the upgrade, reflected in the stock’s impressive 27.94% price return over the past six months.

The firm’s positive outlook is based on JNJ’s current position in its product lifecycle, having worked through the initial impact of Stelara’s loss of exclusivity. Guggenheim believes several marketed and pipeline products from the company’s Innovative Medicine segment will likely drive up estimates and the JNJ multiple over time. The company’s strong financial health score of GOOD from InvestingPro and robust annual revenue of $90.63B support this positive outlook.

Guggenheim made minor updates to its JNJ model after reviewing the latest prescription and pricing data for key Innovative Medicine assets and assessing the impact of recent currency fluctuations.

The firm reported that several investors believe JNJ shares are well positioned for additional upside going forward, following productive conversations since the September upgrade.

In other recent news, Johnson & Johnson has received a significant boost from Goldman Sachs, which raised its stock price target to $212, citing strong performance in the company’s Innovative Medicines segment. The firm anticipates that Johnson & Johnson will surpass consensus estimates for key products like Tremfya, Darzalyx, and Carvykti in the upcoming third-quarter earnings report. Meanwhile, a Los Angeles jury has ordered the company to pay $966 million in a baby powder case, holding it liable for a woman’s mesothelioma. On the pharmaceutical front, Johnson & Johnson announced promising 48-week data for its ulcerative colitis treatment TREMFYA, showing significant clinical and endoscopic remission rates in a Phase 3 study. Additionally, its investigational oral drug icotrokinra met the primary endpoint in a Phase 2b study for ulcerative colitis, with impressive response rates across different doses. In the field of optics, Johnson & Johnson’s ACUVUE OASYS MAX 1-Day for ASTIGMATISM contact lenses outperformed competitors in patient-reported outcomes, with a majority of users preferring it for overall vision. These developments highlight the company’s ongoing advancements and challenges in various sectors.

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