Bank of America Securities analyst Tim Anderson has reiterated their neutral stance on JNJ stock, giving a Hold rating on October 6.
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Tim Anderson has given his Hold rating due to a combination of factors that reflect a balanced outlook for Johnson & Johnson. The company’s revenue estimates for the third quarter are slightly higher, but the earnings per share (EPS) are expected to decrease by 2% due to increased research and development expenses. Looking further into 2025, revenue projections remain stable, but the EPS is anticipated to be slightly lower by less than 1%.
Anderson’s valuation approach maintains a price objective of $198, using a sum-of-the-parts relative price-to-earnings multiple methodology. This valuation considers the company’s MedTech and Pharma segments, weighted at 35% and 65% respectively. The Hold rating reflects an expectation of average long-term growth at a higher-than-average price-to-earnings ratio, suggesting that while the company is performing steadily, it may not present significant upside potential in the near term.
According to TipRanks, Anderson is a 5-star analyst with an average return of 21.0% and a 71.55% success rate. Anderson covers the Healthcare sector, focusing on stocks such as Eli Lilly & Co, Pfizer, and Johnson & Johnson.
In another report released on October 6, Bernstein also maintained a Hold rating on the stock with a $193.00 price target.