How Recent Developments Are Shaping the Johnson & Johnson Investment Story

Johnson & Johnson's stock price target has seen a slight increase, with the Fair Value Estimate rising from $198.03 to $199.56 following recent analyst updates. This adjustment reflects the company's strong operational performance, a positive outlook on business portfolio changes, and encouraging signals from its innovative medicine segment. Stay tuned to discover how you can continue tracking the evolving narrative around Johnson & Johnson's shares as the story develops.

Analyst Price Targets don't always capture the full story. Head over to our Company Report to find new ways to value Johnson & Johnson.

What Wall Street Has Been Saying

Recent analyst commentary on Johnson & Johnson reflects a mix of optimism about the company’s growth trajectory and some ongoing caution regarding legal and market challenges. Below, we break down the prevailing perspectives from the Street.

🐂 Bullish Takeaways

Argus raised its price target to $210 from $185, citing strong third-quarter results, upcoming product launches, and new indications for existing products as key growth drivers. The firm pointed to the separation of the orthopedics business as a transformative move that could support faster growth and higher margins. TD Cowen increased its price target to $222 from $185 and maintained a Buy rating following solid Q3 results and updated 2025 guidance. The analysts highlighted the planned separation of the orthopedics segment, estimating this could lead to notable sales and margin uplift for the remaining company. Raymond James boosted its price target to $209 from $174 and continues to rate shares Outperform. The firm underlined the company’s strong pipeline and divestitures of lower-growth units, suggesting this positions J&J for a new growth phase. Management’s views on 2026 earnings potential were also viewed as encouraging. RBC Capital moved its price target up to $209 from $185, reflecting positive sentiment around improving product fundamentals, manageable litigation risk, and growth within the MedTech division. The analysts cited J&J’s defensive positioning and relative value as supportive of the stock price. Wells Fargo upgraded Johnson & Johnson to Overweight from Equal Weight, setting a new price target of $212, up from $170. This reflects the view that major pharmaceutical risks, including pricing pressure and Stelara exclusivity loss, are largely behind the company, while the current valuation offers an attractive entry point. Guggenheim upgraded J&J to Buy from Neutral, raising its price target to $206 from $167. Guggenheim expressed confidence in the company’s handling of the Stelara exclusivity loss and believes the Innovative Medicine business will drive the next era of growth with particular upside for certain marketed and pipeline assets. Stifel increased its price target to $190 from $165 following outperformance on recent results and what it termed “bullish” company commentary, emphasizing management confidence in accelerating growth.

Story Continues

🐻 Bearish Takeaways

BofA raised its price target to $204 from $198 but maintained a Neutral rating, citing only a modest beat in Q3. The firm noted that although the planned orthopedic spin-off should benefit competitiveness, valuation and limited upside continue to temper enthusiasm. Citi analysts highlighted risks stemming from adverse legal headlines, particularly regarding Tylenol and talc-related lawsuits. Citi maintained a Neutral rating, observing that recent negative attention may prompt consumer shifts to alternative brands and that ongoing litigation remains a source of uncertainty.

Together, recent commentary shows that while many analysts reward Johnson & Johnson for operational execution, new product momentum, portfolio changes, and prudent risk management, some remain cautious due to legal risks and concerns about valuation after recent price appreciation. As such, while sentiment has become more constructive overall, measured perspectives regarding lingering headwinds persist.

Do your thoughts align with the Bull or Bear Analysts? Perhaps you think there's more to the story. Head to the Simply Wall St Community to discover more perspectives or begin writing your own Narrative!NYSE:JNJ Community Fair Values as at Nov 2025

What's in the News

Johnson & Johnson is facing its first lawsuits in the UK over allegations that its talc products cause cancer. More than 3,000 people are suing the company and its subsidiary, Kenvue. The company maintains it is not liable for litigation outside the US and Canada, while Kenvue asserts its baby powder is safe. A Los Angeles jury awarded $966 million in damages against Johnson & Johnson to the family of a woman who died of mesothelioma. This marks the largest verdict to date in the company’s ongoing talc-related litigation. Reports have surfaced that Johnson & Johnson is in talks to acquire Protagonist Therapeutics, a biotechnology firm it is already collaborating with on oral immune disease treatments. The potential deal could be valued at well over $4 billion. Johnson & Johnson announced it is withdrawing the Linx Reflux Management System, designed to treat acid reflux, from markets outside the US for commercial reasons. The company stated the decision is unrelated to safety or efficacy concerns.

How This Changes the Fair Value For Johnson & Johnson

The Fair Value Estimate has risen slightly from $198.03 to $199.56 as a result of analyst updates. The Discount Rate remains unchanged at 6.78%, indicating no shift in the perceived risk profile. The Revenue Growth forecast has increased marginally from 5.08% to 5.10%. The Net Profit Margin is up modestly from 23.44% to 23.49%. The Future P/E Ratio has decreased from 23.97x to 23.33x. This suggests expectations for improved earnings.

🔔 Never Miss an Update: Follow The Narrative

Narratives are a smarter, story-driven way to invest. They connect the company’s journey, including management moves, new products, and challenges, to financial forecasts and fair value estimates, all in one dynamic story. On Simply Wall St’s Community page, Narratives make it easy to see if a company looks over- or under-valued at a glance and stay updated as news or earnings change the outlook. Millions of investors already use Narratives to help decide when to buy or sell.

Want to see the full story? Read the original Johnson & Johnson Narrative for insights on:

How major portfolio shifts and new therapies are driving growth in immunology and oncology, even as older drugs face competition. The impact of $55 billion in US investment, surgical innovations, and powerful MedTech expansion on future profits and margins. Balanced risks, including ongoing legal uncertainties, tariff pressures, and loss of exclusivity for key products, and why these are accounted for in analysts’ fair value.

This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

Companies discussed in this article include JNJ.

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