BUZZ - Broker's Opinion: Brokers State Johnson & Johnson's Macroeconomic Challenges Are About to End

October 14 - ** Johnson & Johnson (JNJ.N) reported on Tuesday that sales from its medical device business (link) fell short of Wall Street expectations, mainly due to geopolitical issues such as the conflict in the Middle East

** According to data compiled by LSEG, an average of 26 analysts rate the stock as “Buy”; the median target price is $280

Focus on 2027

** Raymond James (rated “Outperform”, target price $278) stated: “Weakness in international markets is temporary, and earnings expectations for 2027 are likely to be reset lower (closer to our projections), reaching a healthier and more beatable level”

** JPMorgan (rated “Neutral”, target price: $285) said that macro headwinds, including pricing pressures in China and economic slowdown in the Middle East, will gradually ease by 2027

** RBC Capital Markets (“Outperform”, target price: $280) indicated that the post-earnings stock sell-off “set a negative tone for the entire pharmaceutical sector and highlighted the current heightened market volatility”

** BofA Global Research (rated “Neutral”, target price: $275) considers Johnson & Johnson (JNJ) a “solid pharmaceutical growth stock”, but its valuation is high and consensus upside is limited, leading to a more balanced risk-reward profile

** Citigroup (rated “Buy”, target price: $303) points out that the overall medical technology market remains healthy, but the challenge for the company is how to better translate stable demand into sustained performance

(To assist non-native English speakers, Reuters has automatically translated its report into several other languages. As automated translation may contain mistakes or lack necessary context, Reuters does not guarantee the accuracy of the automated translation text and provides it only for readers’ convenience. Reuters does not assume any responsibility for any damages or losses arising from the use of the automated translation function.)