Stock Price & Analysis

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

Technical Analysis

The stock is currently trading at $146.82, showing a relatively weak technical position. RSI at 51.30 indicates neutral momentum, while the stock is trading below both its 60-day ($149.80) and 200-day ($151.97) moving averages, suggesting bearish sentiment in both medium and long-term trends.

Recent Developments

• JNJ recently announced a $14.6 billion acquisition of Intra-Cellular Therapies (ITCI), which could impact its 2025 EPS by around 40 cents. While this diversifies their portfolio beyond oncology and immunology, there are concerns about the high premium paid (40% above ITCI's previous closing price).
• The company faces challenges with Stelara, one of its top-selling drugs ($11 billion in annual sales), now facing biosimilar competition in both Europe and the US.
• Recent temporary pause of its heart device Varipulse due to safety concerns.

Positive Factors

• Strong market position in growing markets like oncology (10% global market share)
• Solid dividend history with 62 consecutive years of increases
• High rating (90%) from Validea's Shareholder Yield Investor model
• Trading at attractive valuation with forward P/E of 14.42x, below industry average

Analyst Sentiment

Recent analyst actions show mixed sentiment:

• Raymond James: Lowered PT to $165 from $170, maintains Buy rating
• Wells Fargo: Lowered PT to $152 from $166, maintains Hold rating
• Morgan Stanley: Lowered PT to $163 from $175, maintains Hold rating

Conclusion SELL. Despite JNJ's strong market position and attractive valuation, the combination of technical weakness, Stelara competition, and potential EPS dilution from the ITCI acquisition suggests near-term headwinds. The stock may face further pressure as the market digests these challenges.

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

Johnson & Johnson's stock price is expected to reach $172 by the end of 2025, representing a potential upside of over 20% from current levels of $142. This target is based on a forward P/E multiple of 17x and expected adjusted earnings of $10.22 per share.

The key drivers supporting this price target include strong performance in the MedTech segment through strategic acquisitions and continued growth of blockbuster drugs like Darzalex, Erleada, and Tremfya. However, Stelara's biosimilar competition in both Europe and U.S. markets poses the biggest headwind, as it generated $11 billion in annual sales in 2023.

The stock's current valuation at under 14x forward earnings suggests most near-term headwinds are already priced in, providing potential upside as the company executes on its growth initiatives and new drug developments.

The S1 support level for JNJ Stock is $141.99 ,The R1 resistant level for JNJ Stock is $148.24.

As of the end of day on 2025-01-24, the price of JNJ Stock was $146.7.

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 $353.5B.

Based on the provided data and recent market analysis, here's a concise 5-sentence evaluation of JNJ's valuation:

JNJ is currently trading at a P/E of 25.05x (Q4 2024), which is above its historical average, suggesting the stock is moderately overvalued. The company's EV/EBITDA ratio of 12.65x (Q3 2024) and P/S ratio of 3.96x indicate a premium valuation compared to some healthcare peers, particularly considering the upcoming Stelara patent expiration challenges. Recent analyst price targets averaging $175.83 suggest the stock may be undervalued at current levels, though concerns about the $14.6 billion Intra-Cellular Therapies acquisition and its impact on the company's AAA credit rating are weighing on sentiment. The company's strong fundamentals, including consistent dividend growth for over 60 years and stable cash flows, partially justify its premium valuation, but near-term headwinds from the Stelara biosimilar competition could pressure earnings. The stock's current valuation metrics, combined with analyst expectations of 6.1% EPS growth in 2025, suggest JNJ is slightly overvalued at current levels.

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 available data and analyst projections, here's the 2030 price prediction for JNJ stock in three concise sentences:

Johnson & Johnson stock (JNJ) is projected to reach $210-220 by 2030, representing a 43-50% increase from current levels of $146.7, driven by its strong innovative medicine portfolio growth and strategic MedTech acquisitions. The company's focus on expanding its neuroscience portfolio through the recent $14.6 billion Intra-Cellular Therapies acquisition and its goal to own at least 10 innovative medicine assets with peak sales potential of over $5 billion by 2030 supports this growth trajectory. However, near-term headwinds from Stelara biosimilar competition and increased debt levels from acquisitions may create some volatility, but the company's diverse revenue streams and strong R&D pipeline should help maintain its long-term growth momentum.

JNJ has a total of 131900 employees.