Johnson & Johnson Fair Value Estimate Rises to $270.59 After Analyst Target Increases

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Johnson & Johnson's fair value estimate has been raised from $252.87 to $270.59 per share following a wave of analyst target increases. Several firms, including Scotiabank, TD Cowen, Citi, HSBC, Morgan Stanley, Goldman Sachs, Argus, RBC, and Guggenheim, have lifted their price targets into a range of roughly $260 to $305, citing solid Q2 results, updated guidance, and strength in new medicines such as Tremfya, Spravato, Caplyta, and Rybrevant. The company also proposed a settlement of up to $5.5 billion to resolve about 76,000 ovarian cancer talc lawsuits, contingent on 95% claimant acceptance, and reported positive Phase 3 results for TECVAYLI and TALVEY combinations in multiple myeloma, with the combination arm reducing the risk of disease progression or death by 89%. Additionally, Johnson & Johnson agreed to collaborate with Sail Biomedicines on in vivo CAR T therapies, involving initial payments of $785 million and an exclusive option to acquire Sail for $2.58 billion. The updated valuation reflects higher revenue growth assumptions of 7.17%, a net profit margin of 23.71%, and a future P/E of 28.08x, while the discount rate remained near 7.11%.

Impact on stocks 8

Financials▲ · 5 stocks
Biotech & Genomic Medicine▲ · 1 stocks
Johnson & Johnson
JNJ
▲ PositiveCapitalRegulationTechnologyrelevance

Analyst target increases and raised fair value estimate reflect positive earnings and guidance.

Digital Finance & Tokenization▲ · 1 stocks
Others▲ · 1 stocks

Theme Impact 2

Off-coverage companies 1

Sail BiomedicinesPrivate▲ Positive
Capitalrelevance

Collaboration with J&J includes initial payments and exclusive acquisition option.

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