Johnson & Johnson stock rating reiterated at Outperform by RBC Capital

Published 15/10/2025, 12:04
Johnson & Johnson stock rating reiterated at Outperform by RBC Capital

Investing.com - RBC Capital maintained its Outperform rating and $209.00 price target on Johnson & Johnson (NYSE:JNJ) following the company’s third-quarter earnings results.

The healthcare giant reported adjusted operational sales growth of 4.4% year-over-year, exceeding RBC’s estimate of 3.4%, driven by strong performance in its MedTech segment, which grew 5.7% year-over-year.

Johnson & Johnson also announced plans to separate its Ortho business, which RBC Capital projects will add approximately 75 basis points to both sales and earnings per share.

The company’s Innovative Medicine segment grew 3.7% year-over-year overall, with 16% growth when excluding its Stelara product, according to RBC’s analysis.

RBC Capital anticipates Johnson & Johnson will achieve accelerating underlying revenue growth at the upper end of its 5-7% long-range plan, alongside 8.7% year-over-year EPS growth on 3.8% adjusted operational sales growth in 2025, despite headwinds from Stelara and merger and acquisition dilution.

In other recent news, Johnson & Johnson reported its third-quarter earnings for 2025, surpassing analysts’ expectations. The company achieved an earnings per share (EPS) of $2.80, exceeding the forecasted $2.76, and reported revenue of $23.99 billion, above the anticipated $23.76 billion. In response to these results, Stifel raised its price target for Johnson & Johnson to $190 from $165, maintaining a Hold rating on the stock. The firm noted the company’s above-consensus sales and positive business outlook as reasons for the upgrade.

Raymond James also increased its price target for Johnson & Johnson to $209 from $174, citing optimism about the company’s new product pipeline despite challenges with Stelara’s loss of exclusivity. Wolfe Research followed suit, raising its price target to $225 from $200, highlighting strong commercial execution for key products like Carvykti, Tremfya, and Darzalex. Wolfe Research also pointed to expected margin expansion in the latter half of the decade as a factor for the higher valuation. These developments reflect analyst confidence in Johnson & Johnson’s growth prospects.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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