In a report released yesterday, Larry Biegelsen from Wells Fargo maintained a Hold rating on Johnson & Johnson (JNJ – Research Report), with a price target of $170.00.
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Larry Biegelsen has given his Hold rating due to a combination of factors related to Johnson & Johnson’s recent performance in its orthopedic segment. The company’s growth in this area has slowed, with a notable deceleration in hip and knee sales. This slowdown is partly attributed to the ongoing SKU rationalization, which is expected to impact revenues through 2026. Despite this, the company’s overall sales figures were slightly above Wells Fargo’s estimates, indicating some resilience.
However, the mixed results across different product segments, such as the decline in spine sales, suggest challenges in maintaining consistent growth. Additionally, while the company’s performance in the U.S. market was relatively strong, international growth was more modest. These factors, combined with the expectation that competitors like Stryker and Zimmer Biomet may perform better, contribute to the Hold rating, reflecting a cautious outlook on JNJ’s near-term growth potential.
Biegelsen covers the Healthcare sector, focusing on stocks such as Dexcom, Abbott Laboratories, and Johnson & Johnson. According to TipRanks, Biegelsen has an average return of 8.0% and a 53.88% success rate on recommended stocks.
In another report released today, Barclays also maintained a Hold rating on the stock with a $166.00 price target.