Johnson & Johnson stock price target raised to $185 from $177 at Goldman Sachs

Published 17/07/2025, 11:56
Johnson & Johnson stock price target raised to $185 from $177 at Goldman Sachs

Investing.com - Goldman Sachs raised its price target on Johnson & Johnson (NYSE:JNJ) to $185.00 from $177.00 while maintaining a Buy rating following the company’s second-quarter earnings report.

Johnson & Johnson shares closed up 6.2% after reporting top and bottom line beats for Q2 2025 and raising its full-year 2025 guidance. The stock outperformed both the S&P 500, which rose 0.3%, and the Health Care Select Sector SPDR Fund (XLV), which gained 1.2%.

Goldman Sachs noted strong momentum for key products in Johnson & Johnson’s Innovative Medicines segment and better-than-expected performance from the MedTech division. The firm highlighted that this marks the second consecutive quarter where the Innovative Medicines business has more than offset erosion from Stelara biosimilar competition.

The investment bank pointed to "underappreciated product cycles" and "overdone concerns about Stelara revenue erosion" as supporting its thesis on Johnson & Johnson’s strengthening pharmaceutical franchise. Goldman acknowledged that talc litigation remains an uncertainty for the company.

Goldman Sachs sees potential for continued upward revisions to consensus earnings and sales estimates, noting that these have already been trending more positive for Johnson & Johnson compared to both pharmaceutical peers and the broader market.

In other recent news, Johnson & Johnson has updated its financial outlook, projecting adjusted operational revenue growth of approximately 3.5%, up from the previous estimate of 2.5%. The company also revised its full-year earnings per share guidance to a range of $10.80-$10.90, citing stronger top-line performance and a reduced expected impact from tariffs. Wolfe Research has reiterated an Outperform rating with a $175.00 price target, noting the company’s year-to-date outperformance and highlighting strong performances from key drugs like Tremfya and Darzalex. Meanwhile, Goldman Sachs has maintained its Conviction Buy rating with a price target of $177.00, emphasizing the significance of the Innovative Medicine segment to Johnson & Johnson’s financial trajectory. In regulatory developments, Johnson & Johnson submitted a supplemental New Drug Application to the FDA for CAPLYTA, aimed at preventing schizophrenia relapse, supported by positive Phase 3 trial data. Additionally, the company’s IMAAVY has shown sustained disease control in a study for generalized myasthenia gravis, with the data presented at the European Academy of Neurology 2025 Congress. The company has also submitted a Marketing Authorisation Application to the European Medicines Agency for nipocalimab in treating gMG. These recent developments reflect Johnson & Johnson’s ongoing efforts in product innovation and financial performance.

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