A Closer Look at 9 Analyst Recommendations For Johnson & Johnson

Providing a diverse range of perspectives from bullish to bearish, 9 analysts have published ratings on Johnson & Johnson JNJ in the last three months.

The following table summarizes their recent ratings, shedding light on the changing sentiments within the past 30 days and comparing them to the preceding months.

The 12-month price targets assessed by analysts reveal further insights, featuring an average target of $202.33, a high estimate of $215.00, and a low estimate of $169.00. Surpassing the previous average price target of $170.00, the current average has increased by 19.02%.

Interpreting Analyst Ratings: A Closer Look

In examining recent analyst actions, we gain insights into how financial experts perceive Johnson & Johnson. The following summary outlines key analysts, their recent evaluations, and adjustments to ratings and price targets.

Key Insights:

• Action Taken: Analysts frequently update their recommendations based on evolving market conditions and company performance. Whether they 'Maintain', 'Raise' or 'Lower' their stance, it reflects their reaction to recent developments related to Johnson & Johnson. This information provides a snapshot of how analysts perceive the current state of the company.
• Rating: Providing a comprehensive analysis, analysts offer qualitative assessments, ranging from 'Outperform' to 'Underperform'. These ratings reflect expectations for the relative performance of Johnson & Johnson compared to the broader market.
• Price Targets: Analysts navigate through adjustments in price targets, providing estimates for Johnson & Johnson's future value. Comparing current and prior targets offers insights into analysts' evolving expectations.

For valuable insights into Johnson & Johnson's market performance, consider these analyst evaluations alongside crucial financial indicators. Stay well-informed and make prudent decisions using our Ratings Table.

Stay up to date on Johnson & Johnson analyst ratings.

All You Need to Know About Johnson & Johnson

Johnson & Johnson is the world's largest and most diverse healthcare firm. Three divisions make up the firm: pharmaceutical, medical devices and diagnostics, and consumer. The drug and device groups represent close to 80% of sales and drive the majority of cash flows for the firm. The drug division focuses on the following therapeutic areas: immunology, oncology, neurology, pulmonary, cardiology, and metabolic diseases. The device segment focuses on orthopedics, surgery tools, vision care, and a few smaller areas. The last segment of consumer focuses on baby care, beauty, oral care, over-the-counter drugs, and women's health. The consumer group is being divested in 2023 under the new name Kenvue. Geographically, just over half of total revenue is generated in the United States.

Johnson & Johnson's Economic Impact: An Analysis

Market Capitalization Analysis: The company's market capitalization surpasses industry averages, showcasing a dominant size relative to peers and suggesting a strong market position.

Revenue Growth: Johnson & Johnson's revenue growth over a period of 3 months has been noteworthy. As of 31 December, 2023, the company achieved a revenue growth rate of approximately 7.3%. This indicates a substantial increase in the company's top-line earnings. When compared to others in the Health Care sector, the company faces challenges, achieving a growth rate lower than the average among peers.

Net Margin: Johnson & Johnson's net margin surpasses industry standards, highlighting the company's exceptional financial performance. With an impressive 18.93% net margin, the company effectively manages costs and achieves strong profitability.

Return on Equity (ROE): Johnson & Johnson's financial strength is reflected in its exceptional ROE, which exceeds industry averages. With a remarkable ROE of 5.78%, the company showcases efficient use of equity capital and strong financial health.

Return on Assets (ROA): Johnson & Johnson's ROA stands out, surpassing industry averages. With an impressive ROA of 2.43%, the company demonstrates effective utilization of assets and strong financial performance.

Debt Management: Johnson & Johnson's debt-to-equity ratio is below the industry average at 0.43, reflecting a lower dependency on debt financing and a more conservative financial approach.

What Are Analyst Ratings?

Ratings come from analysts, or specialists within banking and financial systems that report for specific stocks or defined sectors (typically once per quarter for each stock). Analysts usually derive their information from company conference calls and meetings, financial statements, and conversations with important insiders to reach their decisions.

Some analysts publish their predictions for metrics such as growth estimates, earnings, and revenue to provide additional guidance with their ratings. When using analyst ratings, it is important to keep in mind that stock and sector analysts are also human and are only offering their opinions to investors.

If you want to keep track of which analysts are outperforming others, you can view updated analyst ratings along withanalyst success scores in Benzinga Pro.

This article was generated by Benzinga's automated content engine and reviewed by an editor.