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Investing.com - Wolfe Research has reiterated an Outperform rating and $175.00 price target on Johnson & Johnson (NYSE:JNJ) stock, highlighting the company’s year-to-date outperformance despite regulatory concerns and ongoing talc litigation.
Johnson & Johnson has gained 8% year-to-date, outpacing both the pharmaceutical sector index (+1%) and the S&P 500 (+6%), according to Wolfe Research’s analysis. The firm expects an update on the Daubert Challenge related to talc litigation in the third quarter of 2025, which could potentially reduce concerns about long-term financial impact if the outcome is favorable.
Wolfe Research notes that Johnson & Johnson recently indicated its previously estimated $400 million tariff impact for fiscal year 2025 could be reduced by half. For the second quarter of 2025, the firm projects revenues of $22.8 billion, in line with consensus estimates of $22.9 billion, while forecasting full-year revenues of $91.9 billion, slightly above consensus of $91.4 billion.
The research firm expects continued strong performance from key drugs Tremfya and Darzalex to offset erosion in Stelara sales during the second quarter. For non-GAAP earnings per share, Wolfe Research estimates $2.65 for Q2 2025, slightly below consensus of $2.69, and $10.73 for full-year 2025, above both company guidance ($10.50-$10.70) and consensus estimates ($10.63).
Looking ahead to the second half of 2025, Wolfe Research anticipates FDA approval of TAR-200 for non-muscle invasive bladder cancer in the fall, with projected 2030 sales of $5.7 billion. The firm also notes Johnson & Johnson’s recent FDA approval for Imaavy (formerly nipocalimab) for generalized myasthenia gravis on April 30, with additional clinical trial results in rheumatoid arthritis expected later this year.
In other recent news, Johnson & Johnson has submitted a supplemental New Drug Application to the U.S. FDA for CAPLYTA, aimed at preventing relapse in schizophrenia, supported by Phase 3 trial data showing a 63% reduction in relapse risk compared to placebo. The company also announced promising results for its dual-targeting CAR T-cell therapy in treating relapsed or refractory large B-cell lymphoma, with complete response rates between 75-80% at the recommended Phase 2 dose. Additionally, Johnson & Johnson’s investigational drug bleximenib, when combined with venetoclax and azacitidine, showed significant antileukemic activity in acute myeloid leukemia patients, achieving an 82% overall response rate for relapsed or refractory cases. The company’s FcRn blocker IMAAVY demonstrated sustained disease control in myasthenia gravis, offering greater improvements in symptom scores compared to competitors. Goldman Sachs reiterated its Conviction Buy rating on Johnson & Johnson stock, projecting stronger-than-consensus performance for key products in the Innovative Medicine segment. The firm also noted that Johnson & Johnson’s earnings per share and sales revisions have trended positively, potentially benefiting from a favorable macroeconomic environment.
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