Stock Price & Analysis

Based on the provided data and current market conditions, here's my analysis of JNJ stock:

Technical Analysis The stock is currently trading at $147.03, showing a decline of -0.50% in the last regular trading session. The RSI(14) at 52.32 indicates a neutral momentum, neither overbought nor oversold. The stock is trading above its 20-day moving average of $144.70, suggesting a slightly bullish short-term trend.

Recent Events & Catalysts

• JNJ is scheduled to report Q4 earnings on January 22, 2025. Analysts expect EPS of $2.00, representing a 12.7% decline year-over-year.
• The company recently announced plans to acquire Intra-Cellular Therapies for $14.6 billion at $132 per share in cash.
• The company faces headwinds from Stelara biosimilar competition in both Europe and U.S., which could impact 2025 revenues significantly.

Analyst Sentiment Recent analyst actions show mixed sentiment:

• B of A Securities: Hold rating with $160 price target (Jan 17, 2025)
• Citigroup: Strong Buy rating with $175 price target (Dec 11, 2024)
• Wolfe Research: Buy rating with $190 price target (Nov 15, 2024)

Investment Thesis Sell considerations:

• Upcoming Stelara patent expiration poses significant revenue risk
• Recent temporary pause of Varipulse heart device due to safety concerns
• Trading at a premium compared to other pharmaceutical names

Buy considerations:

• Strong market position in pharmaceuticals and medical devices
• Promising pipeline including Nipocalimab and Posdinemab
• Current valuation at under 14x forward earnings appears reasonable
• Solid dividend history and financial stability

Given the upcoming earnings report and near-term headwinds from Stelara competition, it would be prudent to sell JNJ stock at current levels and potentially re-evaluate after seeing Q4 results and 2025 guidance.

Based on the provided data and analysis, here is the price prediction for JNJ stock in 2025:

Technical Analysis

Fundamental Analysis

JNJ stock is expected to reach $172 per share by end of 2025, representing a 20% upside from current levels of $147. This projection is based on a forward P/E multiple of 17x and expected earnings of $10.22 per share, which aligns with the company's historical 5-year average valuation.

The key drivers supporting this target include:

1. Strong MedTech business growth from recent strategic acquisitions like V-Wave ($1.7B) and Shockwave Medical ($13.1B) to expand cardiovascular offerings.

2. Continued momentum in blockbuster drugs like Darzalex, Erleada, and Tremfya, though partially offset by Stelara biosimilar competition.

3. Potential FDA approval for new drugs like Nipocalimab and Posdinemab which could become blockbuster treatments.

However, investors should note some headwinds including Stelara patent expiry impact and recent safety concerns with the Varipulse heart device.

The S1 support level for JNJ Stock is $141.66 ,The R1 resistant level for JNJ Stock is $147.54.

As of the end of day on 2025-01-17, the price of JNJ Stock was $147.04.

The target price for JNJ Stock according to analyst rating is 170.00, with the highest price target at 185.00 and the lowest at 159.00. Analysts have a Moderate Buy rating on JNJ Stock overall.

The market cap of JNJ is $354.0B.

Based on the provided data and current market conditions, here's a comprehensive analysis of JNJ's valuation:

Current Market Position JNJ is currently trading at $147.03, showing relatively weak performance with a -0.50% change in the regular market session on January 17, 2025.

Valuation Metrics Analysis The stock's current valuation metrics for Q3 2024 show:

• P/E: 26.68x
• EV/EBITDA: 12.65x
• P/S: 4.47x
• P/B: 5.54x
• Dividend Yield: 3.01%

Key Findings Supporting Overvaluation:

1. The current P/E ratio of 26.68x is significantly higher than the historical average, suggesting premium pricing relative to earnings.
2. The EV/EBITDA multiple of 12.65x indicates the company is trading at a premium compared to its historical valuation levels.
3. The P/B ratio of 5.54x is notably high, suggesting investors are paying a significant premium for the company's net assets.
4. The P/S ratio of 4.47x indicates relatively expensive pricing relative to sales.

Recent Developments JNJ recently announced its acquisition of Intra-Cellular Therapies for $14.6 billion, which could impact its valuation metrics in the coming quarters. This significant cash outlay has already affected the company's cash position, which declined from $23 billion in 2023 to $20 billion as of September 2024.

Conclusion Based on the comprehensive analysis of multiple valuation metrics and recent developments, JNJ appears to be overvalued at current levels. The stock's premium valuation multiples across various metrics, combined with increased debt levels from recent acquisitions, suggest the current price may not be justified by fundamentals.

Johnson & Johnson, through its subsidiaries, is engaged in the research and development, manufacture, and sale of a range of products in the healthcare field. The Company’s primary focus is products related to human health and well-being. It operates through two segments: Innovative Medicine and MedTech. The Innovative Medicine segment is focused on various therapeutic areas, including immunology, infectious diseases, neuroscience, oncology, pulmonary hypertension, and cardiovascular and metabolic diseases. Products in this segment are distributed directly to retailers, wholesalers, distributors, hospitals, and healthcare professionals for prescription use. The MedTech segment includes a broad portfolio of products used in the orthopedic, surgery, interventional solutions, and vision fields. These products are distributed to wholesalers, hospitals, and retailers, and used principally in the professional fields by physicians, nurses, hospitals, eye care professionals and clinics.

Based on the provided data and market analysis, here's the price prediction for Johnson & Johnson (JNJ) stock by 2030:

JNJ stock is projected to reach $210-215 by 2030, driven by its strong pharmaceutical pipeline and strategic MedTech acquisitions. The company's recent acquisitions like Shockwave Medical and focus on cardiovascular interventions position it well for long-term growth in one of the largest MedTech markets.

The company's aggressive investment in both organic and inorganic growth, with approximately $17 billion invested in strategic acquisitions and $16.4 billion in R&D during 2024, provides strong foundation for sustained future growth.

JNJ has a total of 131900 employees.