Johnson & Johnson stock price target raised to $190 by UBS on strong fundamentals

Investing.com - UBS raised its price target on Johnson & Johnson (NYSE:JNJ) to $190.00 from $180.00 on Thursday, while maintaining a Buy rating on the healthcare giant’s stock.

The investment firm cited strong underlying fundamentals in Johnson & Johnson’s business, particularly highlighting continued robust sales growth in the company’s innovative medicines portfolio.

UBS expressed confidence that Johnson & Johnson’s positive catalysts throughout 2025 would successfully offset expected declines in its STELARA product line, which faces competitive pressures.

The firm also noted that Johnson & Johnson’s MedTech business has demonstrated greater resilience than market expectations, with recent acquisitions including ABMD and SWAV helping to supplement growth in sub-segments facing headwinds, such as orthopedics.

UBS anticipates potential upward revisions to earnings estimates through the second half of 2025 and beyond, driven by numerous new product launches across both pharmaceutical and medical technology segments, along with a lower-than-previously-expected tariff impact.

In other recent news, Johnson & Johnson reported strong second-quarter 2025 earnings, surpassing expectations in both its Innovative Medicine and MedTech segments. The company raised its full-year 2025 guidance, with Goldman Sachs increasing its price target to $185 while maintaining a Buy rating. Stifel also raised its price target to $165, citing improved revenue growth projections and an upward revision of earnings per share guidance. The FDA has granted Priority Review for Johnson & Johnson’s bladder cancer drug TAR-200, supported by promising Phase 2b study results. Wolfe Research reiterated an Outperform rating and a $175 price target, highlighting the company’s resilience amid ongoing talc litigation and regulatory concerns. Guggenheim maintained a Neutral rating, raising the price target to $167 due to strong quarterly results, though they noted concerns about future product pipelines and patent expirations. Johnson & Johnson anticipates FDA approval for TAR-200 in the fall, with significant sales potential by 2030. Additionally, the company recently received FDA approval for Imaavy, a treatment for generalized myasthenia gravis, with further trial results expected in rheumatoid arthritis.

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