Steady Performance and Aligned Guidance Justify Hold Rating for Johnson & Johnson

Analyst Terence Flynn from Morgan Stanley maintained a Hold rating on Johnson & Johnson (JNJ – Research Report) and keeping the price target at $168.00.

Terence Flynn has given his Hold rating due to a combination of factors including the company’s latest financial results and guidance. Johnson & Johnson reported revenue and earnings per share (EPS) for the first quarter that were in line with consensus estimates, with no significant surprises to drive stock momentum. Additionally, while Johnson & Johnson’s 2024 guidance ranges were narrowed, the midpoint of these projections remained unchanged and largely aligned with current consensus estimates, suggesting a steady yet unremarkable growth outlook.
The detailed financial performance also played a role in Flynn’s assessment, with key segments like Pharmaceuticals and MedTech performing as expected against consensus. Notably, certain key drug sales either met or exceeded expectations, while others, like Carvykti and Tecvayli, fell short. Despite these variances, the aggregate financial outcomes suggest a stable business performance without significant catalysts to justify an upgrade to a Buy rating or a downgrade to Sell. As such, the Hold rating reflects a balanced view of the company’s current valuation and expected performance.

In another report released today, Bank of America Securities also maintained a Hold rating on the stock with a $180.00 price target.

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Johnson & Johnson (JNJ) Company Description:

Johnson & Johnson provides healthcare products across three segments: Consumer, Pharmaceutical, and Medical Devices. The Consumer segment includes products used in the baby care, oral care, beauty, over-the-counter pharmaceutical, women’s health, and wound care markets. The Pharmaceutical segment focuses on therapeutic areas such as immunology, infectious diseases ad vaccines, neuroscience, oncology, cardiovascular and metabolism, and pulmonary hypertension. The Medical Devices segment offers products used in the orthopedic, surgery, cardiovascular, diabetes care, and eye health fields. The company was founded by Robert Wood Johnson I, James Wood Johnson and Edward Mead Johnson Sr. in 1886 and is headquartered in New Brunswick, NJ.