Freedom Capital Markets has raised its price target for Johnson & Johnson (NYSE:JNJ) to $220.00 from $190.00 while keeping a Hold rating on the stock. The research note attributes the adjustment to better-than-expected 2025 performance and constructive near-term outlook from company management.
The firm highlighted JNJ’s streak of revenue outperformance in 2025, marking the fourth straight period where top-line results exceeded both analyst forecasts and Street expectations. Freedom Capital called out solid execution across JNJ’s two principal operating areas - Innovative Medicine and MedTech - and cited the company’s last twelve months of revenue at $94.19 billion, equivalent to growth of 6.05% over the prior period.
Management’s guidance for 2026 was described as optimistic by Freedom Capital, which noted the company indicated revenue could surpass $100 billion for the first time in its history. The firm listed several near-term commercial and regulatory milestones that could influence results: potential approvals for ICOTYDE and OTTAVA and label expansions for DARZALEX, TREMFYA, and TECVAYLI.
Alongside operational commentary, Freedom Capital referenced shareholder returns, noting JNJ has a long record of dividend continuity with 56 consecutive years of payments and a current yield of 2.35%, according to InvestingPro data cited in the note.
Following JNJ’s updated 2025 guidance, Freedom Capital increased its revenue and earnings-per-share forecasts and enhanced its valuation framework. The firm added a discounted cash flow element to its model and raised its applied target multiples to 18x next-twelve-month P/E and 15x next-twelve-month EV/EBITDA.
Despite the higher target, the analyst maintained a Hold stance, explaining that the share price is now trading near the firm’s estimate of fair value and that valuation multiples are approaching historically high levels.
Recent company results underpinning the revisions included fourth-quarter sales of $24.6 billion, which topped consensus estimates, while reported earnings per share were $2.46, roughly in line with expectations.
Other sell-side reactions to JNJ’s quarterly print and guidance were generally favorable. TD Cowen raised its price target to $250, citing solid momentum. RBC Capital reiterated an Outperform rating and set a $240 price target, observing that the quarterly top line exceeded expectations by about 2%. Guggenheim kept a Buy recommendation with a $227 target and noted sales modestly beat forecasts. Stifel lifted its target to $220, flagging 6.1% year-over-year organic growth driven largely by the Innovative Medicine segment. BofA Securities made a small adjustment to its $221 target, characterizing the results as "solid" and pointing to currency benefits.
Collectively, these analyst actions reflect a broadly constructive reception to Johnson & Johnson’s recent financial performance, while some firms stop short of recommending outright buys given current valuation levels.
Clear summary
Freedom Capital raised its JNJ price target to $220 from $190 but left the stock at Hold after factoring in stronger 2025 results, updated forecasts, a DCF overlay and higher target multiples; the firm noted the shares now trade near fair value.
Key points
- Freedom Capital increased JNJ’s target to $220 and maintained a Hold rating, citing four straight revenue beats and strength in Innovative Medicine and MedTech.
- Management signaled 2026 revenue could top $100 billion; pipeline and label catalysts include ICOTYDE, OTTAVA, DARZALEX, TREMFYA and TECVAYLI.
- Analyst responses were generally positive, with multiple firms raising targets or reiterating favorable ratings following a $24.6 billion Q4 and $2.46 EPS report.
Risks and uncertainties
- Regulatory and approval outcomes for ICOTYDE and OTTAVA are listed as key catalysts; their timing and outcomes remain uncertain and could materially affect revenue expectations.
- Valuation risk - Freedom Capital notes the stock is trading close to its estimate of fair value with multiples near historical highs, limiting upside if growth slows or catalysts underperform.
- Currency effects were flagged by BofA as a factor in results; exchange-rate movements could influence reported revenue and margin outcomes.