In a report released today, Tim Anderson from Bank of America Securities reiterated a Hold rating on Johnson & Johnson, with a price target of $161.00.
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Tim Anderson’s rating is based on a combination of factors that suggest Johnson & Johnson’s stock is currently fairly valued. The company’s revenue and earnings per share estimates have seen slight increases, partly due to favorable foreign exchange impacts. However, these improvements are offset by certain challenges, such as the impact of biosimilars and competitive pressures in their MedTech segment.
Anderson maintains a price objective of $161, which is close to the current trading price, indicating limited upside potential. The stock’s valuation, with an above-average price-to-earnings multiple, reflects its about-average long-term earnings growth prospects. Consequently, Anderson believes a Hold rating is appropriate, suggesting that investors may want to wait for more favorable conditions before making significant investment decisions.
In another report released on July 3, Wells Fargo also maintained a Hold rating on the stock with a $170.00 price target.