Cigna earnings beat by $0.04, revenue topped estimates
On Monday, UBS reaffirmed its Buy rating and a $180.00 price target for Johnson & Johnson stock (NYSE:JNJ). The firm’s analysts highlighted their perspective on the company’s position amid recent challenges and upcoming opportunities. Despite a setback from an unexpected legal decision related to talc-related lawsuits, UBS anticipates that Johnson & Johnson’s core business remains strong.
The analysts expressed caution regarding the company’s first-quarter performance in 2025, suggesting that any deviation from solid execution could lead to significant stock volatility. This caution is partly due to the industry’s first experience with the Part D redesign’s impact on financials and the potential for mis-modeling of exposed products by consensus.
However, UBS noted positive trends in new prescription (NBRx) and total prescription (TRx) growth, particularly pointing out a 14% quarter-over-quarter increase in TRx for Tremfya, a medication used to treat plaque psoriasis and psoriatic arthritis. This growth is attributed to the successful launch for ulcerative colitis (UC) treatment.
Looking ahead, UBS remains optimistic about Johnson & Johnson’s prospects. Analysts are enthusiastic about the potential approval of Tremfya for Crohn’s disease (CD), which would be differentiated by its subcutaneous dosing for both induction and maintenance therapy. They also foresee additional momentum later in the year from the anticipated approval for a subcutaneous induction regimen for UC.
In other recent news, Johnson & Johnson has made significant strides with its drug TREMFYA, which showed positive results in a Phase 3b study for treating psoriatic arthritis. The drug was effective in reducing disease symptoms and slowing joint damage progression. Meanwhile, Johnson & Johnson completed the acquisition of Intra-Cellular Therapies (NASDAQ:ITCI), enhancing its Innovative Medicine division with new treatments like CAPLYTA, aimed at conditions such as schizophrenia and bipolar depression. This acquisition is projected to increase the company’s sales by about $0.7 billion in 2025, although it will initially dilute earnings per share by $0.25.
RBC Capital Markets recently maintained its Outperform rating on Johnson & Johnson, with a price target of $181, showing confidence in the company’s oncology prospects. The combination treatment of RYBREVANT and LAZCLUZE is expected to be a major contributor to the company’s growth in the lung cancer market. Despite ongoing talc litigation, Moody’s has affirmed Johnson & Johnson’s strong business profile and financial flexibility, noting that the company has successfully defended most talc cases in court. Johnson & Johnson’s cash reserves and projected free cash flow are expected to cover any future liabilities related to these legal challenges.
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