RBC maintains Outperform on Johnson & Johnson stock, $181 target

Published 03/04/2025, 14:42
RBC maintains Outperform on Johnson & Johnson stock, $181 target

On Thursday, RBC Capital Markets maintained its Outperform rating on Johnson & Johnson (NYSE:JNJ) shares, with a price target of $181.00. The endorsement follows a recent analyst meeting held by Johnson & Johnson, where the company discussed the potential of RYBREVANT plus LAZCLUZE, based on positive results presented at the 2025 European Lung Cancer Congress (ELCC).

Johnson & Johnson estimates that RYBREVANT plus LAZCLUZE represents a more than $5 billion annual sales opportunity within the projected $60 billion worldwide lung cancer market by 2030. The company highlighted that this combination treatment is expected to significantly contribute to the growth of its Innovative Medicine franchise, supporting a 5-7% operational long-range plan (LRP) growth from 2025 to 2030.

The focus on oncology remains a strategic priority for Johnson & Johnson, as the firm aims to establish a strong position in the market with its broad and differentiated product portfolio. The positive feedback from the ELCC meeting reinforces the company’s direction and potential in the field of cancer treatment.

RBC Capital’s reaffirmation of the Outperform rating and the $181 price target suggests confidence in Johnson & Johnson’s strategy and its ability to achieve the projected growth through its oncology offerings. The company’s innovative efforts in developing treatments like RYBREVANT plus LAZCLUZE are set to play a pivotal role in its performance in the coming years.

In other recent news, Johnson & Johnson has completed its acquisition of Intra-Cellular Therapies (NASDAQ:ITCI), adding it to its Innovative Medicine division. This acquisition is expected to increase Johnson & Johnson’s sales growth by approximately 0.8% in 2025, contributing an estimated $0.7 billion in incremental sales. However, the acquisition is projected to slightly dilute the company’s earnings per share by $0.25 in 2025, with a reduction to $0.21 per share in 2026. The company also continues to face ongoing talc litigation, with a federal judge recently rejecting its attempt to settle claims through a bankruptcy trust. Despite this, Moody’s Ratings has maintained Johnson & Johnson’s Aaa long-term issuer rating, citing the company’s strong business profile and financial flexibility. Analysts at TD Cowen and UBS have both reiterated Buy ratings for Johnson & Johnson, with price targets of $185 and $180, respectively. These analysts note the company’s past successes in court and its ability to manage legal challenges. Johnson & Johnson is expected to continue addressing these lawsuits through the U.S. tort system.

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

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers
© 2007-2025 - Fusion Media Limited. All Rights Reserved.