No Retirement for Johnson & Johnson CEO - Yet
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Mar 22 2011
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Source: SeekingAlpha
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Analyst Views on JNJ
Wall Street analysts forecast JNJ stock price to fall
20 Analyst Rating
13 Buy
7 Hold
0 Sell
Moderate Buy
Current: 234.200
Low
190.00
Averages
218.50
High
240.00
Current: 234.200
Low
190.00
Averages
218.50
High
240.00
About JNJ
Johnson & Johnson and its subsidiaries are engaged in the research and development, manufacture, and sale of a range of products in the healthcare field. The Company’s segments include Innovative Medicine and MedTech. The Innovative Medicine segment is focused on various therapeutic areas, including immunology, infectious diseases, neuroscience, oncology, pulmonary hypertension, cardiovascular and metabolism. Its products include REMICADE (infliximab), SIMPONI (golimumab), SIMPONI ARIA (golimumab), STELARA (ustekinumab), TREMFYA (guselkumab), EDURANT (rilpivirine), and INVEGA SUSTENNA/XEPLION (paliperidone palmitate). The MedTech segment includes a portfolio of products used in cardiovascular, orthopedics, surgery, and vision categories. The Cardiovascular portfolio includes electrophysiology products to treat heart rhythm disorders and circulatory restoration products (Shockwave) for the treatment of calcified coronary artery disease (CAD) and peripheral artery disease (PAD).
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
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- Growth Target Set: Duato emphasized that J&J aims to become the world's leading cancer drug maker by 2030, indicating the company's commitment to cancer treatment as a key growth pillar.
- Ongoing R&D Investment: Despite previous failures in Alzheimer's research, J&J continues to invest in R&D for neurodegenerative diseases, showcasing its concern and responsibility towards significant public health issues.
- Business Restructuring Progress: Following the spin-off of its consumer healthcare business in 2023, J&J is in the early phase of its growth cycle, with plans to separate its orthopedics unit, indicating potential in its pharma and MedTech divisions.
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- Market Competition: Intuitive Surgical is encountering competitive pressure in the robotic-assisted surgery market from companies like Medtronic and Johnson & Johnson; however, its 26 years of market experience and strong customer base help maintain its leading position.
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See More
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- Portfolio Analysis: During the June Monthly Meeting, Jim Cramer and Jeff Marks provided an in-depth analysis of 35 portfolio stocks, highlighting their preference for Intel due to its significant upside potential in data center CPU growth, particularly in the context of competition with TSMC.
- Tech Giants Restructuring: Cramer noted a reordering of the 'Magnificent Seven,' with newcomers like SpaceX and the yet-to-go-public Anthropic and OpenAI emerging as formidable competitors, indicating intensified market competition, especially in the AI sector.
- Strengths of Alphabet and Apple: Alphabet is positioned advantageously in the AI era with its YouTube and Waymo businesses, while Apple leverages its ecosystem of over 2.5 billion iPhone users to strengthen its AI partnership with Alphabet, showcasing both companies' robust market positions.
- Market Dynamics and Investment Strategy: Despite challenges faced by Meta and Microsoft, Cramer advises maintaining investments in Amazon and Nvidia, believing that the latter's GPU demand will continue to grow, and that Amazon's cloud business remains highly profitable.
See More
Johnson & Johnson CEO Reaffirms No Plans for GLP-1 Market
- Clear Market Positioning: CEO Joaquin Duato stated that Johnson & Johnson will not enter the rapidly growing GLP-1 obesity drug market, instead focusing on treatments for diseases like cancer, reflecting a strategic decision in oncology.
- Growth Target Set: Duato emphasized that J&J aims to become the world's leading cancer drug maker by 2030, indicating the company's commitment to cancer treatment as a key growth pillar.
- Ongoing R&D Investment: Despite previous failures in Alzheimer's research, J&J continues to invest in R&D for neurodegenerative diseases, showcasing its concern and responsibility towards significant public health issues.
- Business Restructuring Progress: Following the spin-off of its consumer healthcare business in 2023, J&J is in the early phase of its growth cycle, with plans to separate its orthopedics unit, indicating potential in its pharma and MedTech divisions.
See More
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- Market Volatility Overview: The S&P 500 experienced significant volatility over the past three weeks, recording its worst session in eight months on June 5, just after reaching record highs, indicating shifts in market sentiment and investor uncertainty.
- Portfolio Performance: Among 34 stocks, 19 have risen since the May meeting, with Arm's stock soaring 38.2% driven by strong AI demand and the release of a new Nvidia chip, highlighting the potential for a rebound in tech stocks.
- Bank Stocks Recovery: Wells Fargo's shares increased by 13.9%, reflecting the financial sector's status as the best-performing group in the S&P 500, although it remains down nearly 7% year-to-date, suggesting a cautious recovery amid potential earnings volatility.
- Underperforming Stocks: Amazon's stock fell 10.8%, primarily due to concerns over AI investments, despite securing a $17.5 billion loan for AI development, raising questions about its future financial health and investor confidence.
See More
Citadel Advisors Increases Stake in Intuitive Surgical Amid Market Challenges
- AI Stock Reduction: Citadel Advisors sold 2.9 million shares of Nvidia and 6 million shares of Amazon in Q1, although both remain among its largest holdings, indicating a strategic shift to reallocate capital into more attractive investment opportunities.
- Healthcare Stake Increase: The firm increased its stake in Intuitive Surgical by 30.3% during the first quarter, reflecting confidence in the company's long-term prospects despite facing multiple challenges from competition, lower-margin products, and tariffs.
- Intensifying Market Competition: Intuitive Surgical is encountering increased competition in the robotic-assisted surgery market from Medtronic and Johnson & Johnson; however, the company maintains a significant lead due to its 26 years of market experience and extensive installed base.
- Profitability Outlook: Despite Intuitive Surgical's high valuation with a forward P/E ratio of 39.7, its revenue and earnings growth outpace peers, and its strong competitive edge in the medical device sector justifies this premium.
See More
Citadel Advisors Increases Stake in Intuitive Surgical Amid Challenges
- Increased Stake: Citadel Advisors raised its stake in Intuitive Surgical by 30.3% in Q1, demonstrating confidence in the company's long-term growth potential despite facing challenges such as increased competition and tariffs.
- Market Competition: Intuitive Surgical is encountering competitive pressure in the robotic-assisted surgery market from companies like Medtronic and Johnson & Johnson; however, its 26 years of market experience and strong customer base help maintain its leading position.
- Financial Pressures: Despite relatively strong financial results, Intuitive Surgical's stock has dropped 20% over the past 12 months due to declining product margins and tariff impacts, raising investor concerns about its future performance.
- Long-Term Outlook: Intuitive Surgical is exploring ways to leverage artificial intelligence to enhance its device capabilities, and despite current challenges, its vast market potential and high switching costs provide a solid foundation for future growth.
See More
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- Market Rally: Following Trump's announcement of a US-Iran peace deal, the S&P 500 rose by 1.85%, marking its best performance since April 8, indicating a positive market reaction to reduced geopolitical risks.
- Tech Sector Surge: The Nasdaq jumped over 3%, achieving its best session since March 31, reflecting renewed investor confidence in tech stocks, which may drive future investment inflows.
- Pharma Stock Pressure: Pharmaceutical stocks face downward pressure after the Centers for Medicare and Medicaid Services proposed new drug price negotiations, with analysts warning of potential risks for companies like Johnson & Johnson and Bristol Myers, impacting their short-term performance.
- Salesforce Acquisition: Salesforce announced its acquisition of customer service platform Fin for $3.6 billion, expected to close in Q4 of fiscal year 2027, aimed at enhancing its AI customer service capabilities, although its stock failed to maintain gains during the market rally, highlighting uncertainty about AI's long-term impact.
See More
