Update shared on24 Sep 2025
Fair value Increased 1.22%Analysts raised Johnson & Johnson’s price target to $179.64, reflecting confidence in robust performance of its Innovative Medicine portfolio and pipeline assets, improved earnings guidance, and resilient management of patent challenges, partly offset by regulatory uncertainty.
Analyst Commentary
- Bullish analysts view Johnson & Johnson's handling of the Stelara loss of exclusivity as strong, emphasizing confidence in new growth led by its Innovative Medicine business and existing product portfolio (Tremfya, Darzalex, Spravato, Caplyta).
- Analysts highlight underappreciated value in the company's marketed and pipeline assets, expecting these to significantly improve growth expectations for 2027 and beyond.
- Positive second quarter results supported upward earnings and sales guidance, with management signaling the ability to exceed previous long-term sales CAGR estimates for Innovative Medicine.
- Raised price targets also reflect currency tailwinds, stronger than anticipated sales, and reduced anticipated tariff impact.
- Caution persists among some analysts due to uncertainty around pharma tariffs and evolving drug pricing policy exposure, as well as the paused Laminar LAAX device trial.
What's in the News
- Johnson & Johnson is withdrawing the Linx Reflux Management System from markets outside the U.S. due to commercial reasons, which could impact GERD and lung transplant patients internationally (Bloomberg, 2025-09-23).
- RFK Jr. is expected to claim in an upcoming report that Tylenol use in pregnancy may be linked to autism, sending Kenvue (Tylenol's owner) shares down 9% and Johnson & Johnson shares down 1%, despite J&J having previously spun out Kenvue (WSJ, 2025-09-05).
- The Trump administration's announcement on potential pharmaceutical import tariffs is now likely to come in several weeks, affecting major drugmakers including Johnson & Johnson (Reuters, 2025-08-13).
- The U.S. government and pharma industry are discussing raising medicine prices abroad, including support for “most favored nation” pricing, which would impact Johnson & Johnson and peers by potentially reducing U.S. costs but increasing international prices (Reuters, 2025-08-08).
- The White House is considering charging patent holders a 1%-5% fee on overall patent value, a move that could significantly affect pharma companies such as Johnson & Johnson due to their reliance on patent protections (WSJ, 2025-07-28).
Valuation Changes
Summary of Valuation Changes for Johnson & Johnson
- The Consensus Analyst Price Target remained effectively unchanged, moving only marginally from $177.47 to $179.64.
- The Net Profit Margin for Johnson & Johnson has risen slightly from 21.97% to 23.05%.
- The Future P/E for Johnson & Johnson has fallen slightly from 22.76x to 21.91x.
Disclaimer
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