Guggenheim reiterated its Buy rating and $206.00 price target on Johnson & Johnson (NYSE: JNJ), reaffirming its bullish stance following an upgrade from Neutral in September.
The firm said investor feedback since its earlier upgrade had been largely positive, with many agreeing that J&J shares were well positioned for additional upside. Analysts maintained that the company had successfully navigated the initial impact of Stelara’s loss of exclusivity and was entering a new phase of growth supported by marketed and pipeline assets in its Innovative Medicine segment.
Guggenheim made minor adjustments to its model to account for updated prescription and pricing data on key products, as well as recent foreign exchange fluctuations. The firm said it continued to see room for upward revisions to earnings estimates and valuation multiples as the company’s product cycle advanced.
