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Investing.com - RBC Capital raised its price target on Johnson & Johnson (NYSE:JNJ) to $185.00 from $181.00 on Thursday, while maintaining an Outperform rating on the healthcare giant’s stock.
The firm cited Johnson & Johnson’s second-quarter performance, which exceeded expectations for both sales and earnings per share. The company delivered adjusted operational sales growth of 3.0% year-over-year, surpassing RBC’s estimate of 1.0%.
Medical (TASE:BLWV) Technology segment performance was particularly strong with 4.1% year-over-year growth, while the Innovative Medicine segment grew 2.4% compared to the same period last year. RBC highlighted robust momentum in the Innovative Medicine segment excluding Stelara, which showed 15.5% year-over-year growth in the second quarter.
Johnson & Johnson raised its 2025 guidance for both top and bottom lines, demonstrating strong operational leverage with 8.7% EPS growth despite challenges from Stelara loss of exclusivity and Part D redesign, which created a $2 billion sales impact.
RBC Capital’s decision to raise the price target reflects expectations for multiple expansion as Johnson & Johnson executes its strategy and accelerates from what the firm described as "Q2 trough levels."
In other recent news, Johnson & Johnson reported strong second-quarter 2025 earnings, prompting several investment firms to adjust their stock price targets. UBS raised its price target to $190, citing robust sales growth in the company’s innovative medicines portfolio and resilience in its MedTech business. Goldman Sachs also increased its target to $185, highlighting strong momentum in the Innovative Medicines segment and better-than-expected performance from MedTech. Meanwhile, Guggenheim adjusted its target to $167 following the earnings report, although it maintained a Neutral rating due to concerns about pipeline visibility and upcoming patent expirations. Stifel raised its price target to $165, noting the company’s updated guidance for increased operational revenue growth and earnings per share. Additionally, the U.S. Food and Drug Administration granted Priority Review to Johnson & Johnson’s bladder cancer drug TAR-200, supported by promising Phase 2b study results. The company expects this regulatory milestone to enhance its oncology portfolio. These developments reflect Johnson & Johnson’s strategic efforts to bolster growth amid competitive pressures.
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