Shares of Johnson & Johnson (NYSE:JNJ) rose in early trading on Wednesday, after the company reported upbeat third-quarter results.
Here are some key analyst takeaways:
- RBC Capital Markets analyst Trung Huynh maintained an Outperform rating, while cutting the price target from $290 to $280.
- Guggenheim Securities analyst Vamil Divan reiterated a Buy rating on the stock.
Check out other analyst stock ratings.
RBC Capital Markets: While the sell-off inJohnson & Johnson’s shares, despite the company delivering in-line quarterly results and raising its guidance, seems "excessive," it sets "a negative tone for the broader Pharma sector," Huynh said in a note.
The LIBREXIA-STROKE study results are expected this year, and the LIBREXIA-AF trial remains on track for the first quarter of 2027, the analyst stated.
The drug Darzalex underperformed in the third-quarter due to lower pricing outside the US, although the actual volume of drug sales remains strong, he added.
The analyst further noted that Johnson & Johnson expects 2027 sales growth to be similar to 2026, after adjusted for:
- Foreign currency headwinds
- Upcoming patent expirations (loss of exclusivity)
- Impact from the extra week
Guggenheim Securities: Johnson & Johnson reported third-quarter sales of $25.4 billion, almost in-line with consensus of $25.38 billion, while its non-GAAP earnings of $2.59 per share came in higher than estimates of $2.52 per share, Divan said.
While management raised their 2026 guidance for both sales and non-GAAP earnings to $101.0-$101.4 billion and $11.05-$11.15 per share, respectively, both are slightly below consensus of $101.3 billion and $11.19, respectively, he added.
Investors are likely to be disappointed with some of the sales upside being driven by older products like Stelara and Simponi, with Tremfya and Tecvayli being "the only newer and strategically important products that appear to have meaningfully beat expectations," the analyst wrote.
Results from MedTech, especially the Cardiovascular segment and Abiomed, were also "somewhat disappointing," he further stated.
JNJ Price Action: Shares of Johnson & Johnson had risen by 1.60% to $252.60 at the time of publication on Wednesday.
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