Update shared on04 Sep 2025
Johnson & Johnson’s unchanged analyst price target reflects balanced sentiment, with bulls encouraged by Q2 earnings strength, improved guidance, and ongoing growth expectations, while bears flag regulatory and clinical trial risks, resulting in fair value holding steady at $177.47.
Analyst Commentary
- Bullish analysts raised price targets following Johnson & Johnson’s Q2 earnings beat, with expectations for continued top- and bottom-line growth into 2026 and potential to exceed guidance for Innovative Medicine sales CAGR.
- Updated earnings guidance was supported by currency tailwinds, sales strength, and a lower projected impact from pharma tariffs, according to management commentary.
- Some bullish analysts noted the sum-of-the-parts valuation and robust H2 growth outlook, seeing previously communicated acceleration in performance as plausible and achievable.
- Bearish analysts cited risk factors including limited visibility on possible pharma tariffs and Most Favored Nation drug pricing policy, flagging these as overhangs for the stock.
- The voluntary pause of the Laminar LAAX clinical trial was acknowledged as a headwind, introducing trial completion delays and raising uncertainty regarding device safety and competitive timelines.
What's in the News
- The Trump administration is expected to announce new tariffs on pharmaceutical imports, including Johnson & Johnson, within weeks, later than previously indicated (Reuters, Aug 13, 2025).
- U.S. officials are working with drugmakers, including Johnson & Johnson, to encourage higher medicine prices abroad through "most favored nation" pricing, aiming to cut domestic drug costs (Reuters, Aug 8, 2025).
- The White House is considering a significant overhaul of the patent system that may require patent holders, such as Johnson & Johnson, to pay a 1%-5% annual fee on patent value—a move that could be costly for the pharma sector (WSJ, July 28, 2025).
- President Trump has indicated tariffs on pharmaceuticals are probable by August 1, 2025, starting low and escalating after a year, directly impacting companies like Johnson & Johnson (Bloomberg, July 16, 2025).
- Major cuts in U.S. foreign aid have derailed anticipated breakthroughs in HIV treatment and vaccine programs in Africa, threatening drug procurement and operations for firms including Johnson & Johnson (NYT, June 25, 2025).
Valuation Changes
Summary of Valuation Changes for Johnson & Johnson
- The Consensus Analyst Price Target remained effectively unchanged, at $177.47.
- The Consensus Revenue Growth forecasts for Johnson & Johnson remained effectively unchanged, at 4.7% per annum.
- The Net Profit Margin for Johnson & Johnson remained effectively unchanged, at 21.98%.
Disclaimer
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