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Investing.com - Guggenheim upgraded Johnson & Johnson (NYSE:JNJ) from Neutral to Buy on Tuesday, raising its price target to $206.00 from $167.00.
The upgrade comes as Guggenheim expressed confidence in how Johnson & Johnson has navigated the loss of exclusivity for Stelara, a $10 billion-plus asset, and the emerging product portfolio in its Innovative Medicine business that is expected to drive the company’s next growth phase.
Guggenheim highlighted several existing products with significant upside potential, including Tremfya, Darzalex, Spravato, and Caplyta, alongside newer assets that the firm believes are underappreciated by investors, such as Inlexzo (TAR-200), TAR-210, Rybrevant, icotrokirra, and JNJ-4804.
The firm noted that Johnson & Johnson shares have risen approximately 13.2% since mid-July’s second-quarter 2025 earnings report, outperforming the S&P’s 6.5% gain during the same period, partly due to management’s confident outlook for growth in the second half of 2025 and into 2026.
Guggenheim’s new DCF-derived price target suggests Johnson & Johnson should trade at approximately 18.0x 2026 estimated earnings, which the firm considers reasonable given the stable mid-to-high single-digit sales growth from the Med Tech segment and expected upside from Innovative Medicine.
In other recent news, Johnson & Johnson announced promising results from its Phase 2 MajesTEC-5 study, showing that its investigational immune-based induction regimen combining TECVAYLI and DARZALEX FASPRO achieved minimal residual disease negativity in 100% of evaluable patients with newly diagnosed multiple myeloma. Additionally, the company received FDA approval for Inlexzo, a novel intravesical drug-releasing system for treating BCG-unresponsive non-muscle invasive bladder cancer, marking a significant advancement in cancer treatment. Following this approval, Guggenheim maintained a Neutral rating on Johnson & Johnson, with a price target of $167.00, while Goldman Sachs raised its price target to $186.00, citing confidence in new drug cycles. In other developments, Johnson & Johnson’s experimental oral psoriasis drug icotrokinra outperformed deucravacitinib in Phase 3 clinical trials, demonstrating superior skin clearance with similar adverse event rates to placebo. These recent developments highlight Johnson & Johnson’s ongoing innovations in pharmaceutical treatments and advancements in clinical trials.
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