Guggenheim Upgrades Johnson & Johnson to “Buy” with New Price Target

Investment firm Guggenheim has elevated its rating for shares of Johnson & Johnson (NYSE: JNJ) from neutral to “buy” in a research note issued to investors on Tuesday, signalling confidence in the company’s future performance. The firm has set a new price target of $206.00, an increase from its previous target of $167.00.

This upgrade comes amid a wave of positive sentiment from other analysts. On July 17, UBS Group raised its price target for Johnson & Johnson from $180.00 to $190.00, maintaining a “buy” rating. Similarly, Bank of America increased its target from $161.00 to $175.00 while keeping a neutral stance. The Royal Bank of Canada also adjusted its price objective from $181.00 to $185.00 with an “outperform” rating.

Further encouraging analysts’ optimism, Citigroup raised its target for Johnson & Johnson from $185.00 to $200.00 with a buy rating, and JPMorgan Chase & Co. increased its price target from $185.00 to $200.00, maintaining a neutral rating.

As of now, the stock has garnered a consensus rating of “Moderate Buy,” with two analysts giving it a strong buy rating, ten issuing buy ratings, and nine holding onto a neutral rating. According to data from MarketBeat, the average target price for Johnson & Johnson currently stands at $181.40.

Current Stock Performance and Recent Earnings

On Tuesday, Johnson & Johnson’s stock opened at $176.35. The company boasts a market capitalization of $424.71 billion, a price-to-earnings (P/E) ratio of 18.86, and a P/E/G ratio of 2.22. Over the past year, its stock has fluctuated between a low of $140.68 and a high of $181.16. The recent moving averages reflect stability, with a 50-day average price at $173.56 and a 200-day average at $161.79.

In its latest earnings report, released on July 16, Johnson & Johnson reported earnings per share (EPS) of $2.77, surpassing analysts’ expectations of $2.68 by $0.09. Revenue for the quarter reached $23.74 billion, exceeding the consensus estimate of $22.85 billion. The company recorded a net margin of 25.00% and a return on equity of 32.49%, marking a year-over-year revenue growth of 5.8%. Looking ahead, Johnson & Johnson has guided for fiscal year 2025 EPS in the range of $10.800 to $10.900.

Dividends and Insider Transactions

In addition to positive stock ratings, Johnson & Johnson recently announced a quarterly dividend of $1.30 per share, which was paid on September 9. This dividend, available to investors of record as of August 26, translates to an annualized yield of 2.9%, with a payout ratio currently at 55.61%.

In other corporate developments, Jennifer L. Taubert, Executive Vice President, sold 56,471 shares of the company on September 4 at an average price of $177.81, amounting to over $10 million in total value. Following this transaction, Taubert retains 178,013 shares, valued at approximately $31.65 million.

Institutional Holdings

Several institutional investors have recently adjusted their positions in Johnson & Johnson. Notably, W.H. Cornerstone Investments Inc. increased its stake by 0.7%, now holding 7,896 shares. Similarly, YANKCOM Partnership grew its holdings by 0.8%, holding 7,042 shares. Other firms, such as Greenup Street Wealth Management LLC and Ellis Investment Partners LLC, have also increased their investments, contributing to the overall institutional ownership of 69.55% in the company.

As a leader in the healthcare sector, Johnson & Johnson continues to focus on research, development, and sales across various segments, including Innovative Medicine and MedTech. Analysts remain optimistic about its trajectory, reflected in the recent upgrades and strong earnings performance.