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Hold Recommendation for Johnson & Johnson Amid Modest Earnings Beat and Strategic Spin-Off Plans

Hold Recommendation for Johnson & Johnson Amid Modest Earnings Beat and Strategic Spin-Off Plans

Bank of America Securities analyst Tim Anderson has reiterated their neutral stance on JNJ stock, giving a Hold rating today.

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Tim Anderson’s rating is based on several factors that contribute to a Hold recommendation for Johnson & Johnson. The company’s third-quarter earnings slightly exceeded expectations, with revenues and earnings per share (EPS) coming in 1% above consensus estimates. This was primarily driven by the performance of Stelara, which did not decline as much as anticipated. Additionally, the revenue guidance for 2025 was modestly increased, although EPS guidance remained unchanged.
Another significant factor in the Hold rating is the planned spin-off of the orthopedic segment of MedTech, which is expected to take 18-24 months. This move is seen as beneficial in the long term, potentially enhancing the competitiveness of DePuy Synthes. Despite these developments, Johnson & Johnson’s stock is considered fairly valued, with growth prospects being about average and the stock trading at an above-average valuation. The company’s strong year-to-date performance is attributed to its perception as a safe and defensive investment compared to other large biopharmaceutical companies.

In another report released today, Barclays also maintained a Hold rating on the stock with a $176.00 price target.

Based on the recent corporate insider activity of 33 insiders, corporate insider sentiment is negative on the stock. This means that over the past quarter there has been an increase of insiders selling their shares of JNJ in relation to earlier this year.

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