Johnson & Johnson stock price target raised to $195 from $175 at Wolfe Research

Investing.com - Wolfe Research has raised its price target on Johnson & Johnson (NYSE:JNJ) to $195.00 from $175.00 while maintaining an Outperform rating on the stock.

The firm cited increased confidence in Johnson & Johnson’s upcoming talc litigation outcome, which led to lower weighted average cost of capital (WACC) assumptions in its discounted cash flow analysis.

Wolfe Research acknowledged that the pharmaceutical sector faces significant uncertainty in 2025, specifically highlighting sector-specific tariffs, Most Favored Nations pricing, and ongoing talc litigation as key concerns.

Despite these macroeconomic headwinds, the research firm remains optimistic about Johnson & Johnson’s growth prospects, particularly from its Innovative Medicine franchise.

The price target increase represents an 11.4% boost from the previous target of $175.00, reflecting Wolfe Research’s enhanced outlook for the healthcare giant.

In other recent news, Johnson & Johnson reported strong financial results for the second quarter of 2025, with worldwide sales reaching $23.7 billion, reflecting a 4.6% operational sales growth. The company also adjusted its full-year sales guidance upward to $92.9 billion and increased its earnings per share (EPS) guidance to $10.85. In addition to these financial updates, Johnson & Johnson announced a significant $2 billion investment to expand its manufacturing capabilities in North Carolina. This investment will involve the construction of a new 160,000+ square foot facility at FUJIFILM’s biopharmaceutical site in Holly Springs. The expansion is expected to create around 120 new jobs over the next decade and is part of the company’s strategy to produce most of its advanced medicines domestically for U.S. patients. These developments highlight Johnson & Johnson’s commitment to growth and strengthening its manufacturing footprint in the United States.

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