Morgan Stanley Upgrades Johnson & Johnson to Overweight

Written by Emily J. Thompson, Senior Investment Analyst

JNJ+1.17%

Source: seekingalpha

Updated: 1h ago

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Source: seekingalpha

Optimistic Growth Outlook: Morgan Stanley analyst Terence Flynn projects Johnson & Johnson (JNJ) to achieve approximately 5.5% revenue and 12% earnings per share CAGR from 2026 to 2030, indicating a favorable growth outlook compared to its biopharma peers.
Product Line Enhancement: The analyst raised estimates for key J&J products Tremfya, Icotyde, Tecvayli, and Darzalex, arguing that the company's new product cycle nearly fills the gap left by its patent cliff, enhancing its competitive position.
Price Target Increase: Flynn raised JNJ's price target from $200 to $262 per share, noting that the stock is trading at about a 3x discount to the S&P 500, highlighting its relative undervaluation.
Earnings Expectations Exceed Consensus: The analyst believes that JNJ's robust new product cycle could drive earnings per share above consensus estimates by approximately 20%, although further expansion of its valuation multiple is unlikely, maintaining a positive outlook for future performance.

JNJ

$227.07+Infinity%1D

Analyst Views on JNJ

Wall Street analysts forecast JNJ stock price to fall over the next 12 months. According to Wall Street analysts, the average 1-year price target for JNJ is 218.50 USD with a low forecast of 190.00 USD and a high forecast of 240.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.

20 Analyst Rating

13 Buy

7 Hold

0 Sell

Moderate Buy

Current: 224.440

Low

190.00

Averages

218.50

High

240.00

Current: 224.440

Low

190.00

Averages

218.50

High

240.00

Morgan Stanley

Equal Weight -> Overweight

upgrade

$200 -> $262

2026-01-28

New

Reason

Morgan Stanley

Price Target

$200 -> $262

AI Analysis

2026-01-28

New

upgrade

Equal Weight -> Overweight

Reason

Morgan Stanley upgraded Johnson & Johnson to Overweight from Equal Weight with a price target of $262, up from $200. The firm cites its higher estimates from the company's new products and a higher valuation multiple for the upgrade. J&J is on a path to earnings beats from a number of new product cycles where Morgan Stanley is 20% above consensus estimates, the analyst tells investors in a research note. The firm says Johnson & Johnson offers one of the most robust new product cycle offerings in biopharma. It upped estimates for Tremfya, Icotyde, Tecvayli and Darzalex.

Guggenheim

Vamil Divan

Buy

maintain

$227 -> $240

2026-01-23

New

Reason

Guggenheim

Vamil Divan

Price Target

$227 -> $240

2026-01-23

New

maintain

Buy

Reason

Guggenheim analyst Vamil Divan raised the firm's price target on Johnson & Johnson to $240 from $227 and keeps a Buy rating on the shares after the company reported "solid" Q4 results and provided initial 2026 guidance that was slightly ahead of sell-side estimates. Following the quarter, the firm is making several adjustments to its model, including raising near-term Tremfya estimates, accelerating Stelara erosion, and raising estimates for multiple newer products, says the analyst, who continues to identify J&J as a Top Picks in the large cap biopharma sector.

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BofA

Jason Gerberry

Neutral

maintain

$220 -> $221

2026-01-22

Reason

BofA

Jason Gerberry

Price Target

$220 -> $221

2026-01-22

maintain

Neutral

Reason

BofA analyst Jason Gerberry raised the firm's price target on Johnson & Johnson to $221 from $220 and keeps a Neutral rating on the shares. The firm "modestly" increased its 2026 sales and EPS estimates following J&J's "solid" Q4 report, but thinks J&J's premium multiple "encapsulates the current consensus growth outlook" and notes that it is more cautious on the new product cycle.

Goldman Sachs

Asad Haider

Buy

maintain

$240 -> $250

2026-01-22

Reason

Goldman Sachs

Asad Haider

Price Target

$240 -> $250

2026-01-22

maintain

Buy

Reason

Goldman Sachs analyst Asad Haider raised the firm's price target on Johnson & Johnson to $250 from $240 and keeps a Buy rating on the shares. The setup is strong for another strong year with ongoing momentum in Innovative Medicine and MedTech, both of which demonstrated better-than-expected Q4 trends ahead of tailwinds in 2026 with multiple new product cycles continuing to unfold, the analyst tells investors in a research note.

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.