Summary

  • RBC initiated coverageon Johnson & Johnson (NYSE: JNJ), giving the stock an ‘outperform’ rating and a price target of US$178.
  • JNJ has a consensus mean price target of US$180.71 and the mean recommendation rating on JNJ is 2.4 on five.
  • JNJ reported a total revenue of US$25.53 billion for Q2 2023.

Brokerage RBC initiated its coverage on Johnson & Johnson (NYSE: JNJ), giving the stock an ‘outperform’ rating. The broker et its price target at US$178, an upside potential of over 13% over Thursday’s closing price.

The broker stated that JNJ’s current trading is in line with past multiples. Additionally, the broker commented that Johnson & Johnson’s improved financial health after consumer health spin off should also act in the company’s benefit.

Powered By: TradingView

JNJ closed at US$157 on Thursday, October 5, 2023. The stock closed 1.04% higher on the day, while its YTD performance was 10.8% lower at Thursday’s close.

Brokers expect 15% upside in JNJ’s stock price

JNJ has a mean consensus price target of US$180.71, a potential upside of 15% over JNJ’s closing price on Thursday. Meanwhile, the mean recommendation rating on JNJ is 2.4 on five. Here, one indicates a ‘strong buy’ rating while five stands for a ‘strong sell' rating.

Broker Leerink Partners upgraded its rating on JNJ to ‘outperform’ and gave the stock a price target of US$182. Wells Fargo retained an ‘overweight’ rating on JNJ and gave a price target of US$186.

Image Source: ©2023 Kalkine®; Data Source: EODHD/Others

Meanwhile, Guggenheim Securities gave JNJ a ‘neutral’ rating, with a price target around 8% higher than Wednesday’s closing price. Similarly, Stifel Nicolaus also rated JNJ as ‘Hold’.

EODHD/Others data suggests that, of the 23 analysts that have covered the stock, four have given JNJ a ‘strong buy’ rating and six have given it a ‘buy’ rating. Thirteen analysts believe JNJ is a ‘hold’, while none of the analysts have given JNJ a ‘sell’ or ‘strong sell’ rating.

Johnson & Johnson reports gross profit growth

For the June 2023 quarter, JNJ reported a total revenue of US$25.53 billion, as against US$24.746 billion in the previous March quarter. The company’s gross profit also rose from US$16.33 billion in March 2023 quarter to US$17.3 billion in the June 2023 quarter.

The operating income for Q2 2023 was US$6.8 billion, compared to US$6.6 billion in the March 2023 quarter.

Meanwhile, the net income for the June quarter was US$5.14 billion and the basic EPS stood at US$1.98 for the quarter. Diluted EPS was US$ 1.96. Johnson & Johnson’s EBITDA stood at US$9.04 billion in the June 2023 quarter.

JNJ’s full-year 2023 guidance for adjusted operational sales growth ranges between 6% to 7%. The adjusted EPS is expected to range between US$10.7 to US$10.80 for the full year 2023.