Johnson & Johnson (JNJ) PT Raised to $168 at CFRA

CFRA analyst Stewart Glickman raised the price target on Johnson & Johnson (NYSE: JNJ) to $168.00 (from $162.00) while maintaining a Hold rating.

The analyst commented, "Our 12-month target price of $168, up $6, reflects a 15.5x multiple applied to our 2024 EPS estimate, slightly below JNJ's recent historical forward average, but higher than previously modeled. We keep our 2023 and 2024 EPS estimates at $10.52 and $10.82, respectively. JNJ announced a revised bankruptcy protection plan for its LTL subsidiary, which is embroiled in litigation over alleged asbestos in JNJ's talc products. If approved by the Courts, JNJ would pay out $8.9 billion over 25 years, a considerable uptick from its prior offer of $2.0 billion. Per the Wall Street Journal, 75% of the voting claimants would need to approve this revised plan. Should it be approved, the plan would provide some certainty over JNJ's legal liability on its talc products, but reaching that 75% level is unclear at this point. Longer-term, JNJ faces a looming patent cliff on Stelara (late 2023), but does have good growth potential from oncology drugs Darzalex and Imbruvica, both of which have patent protection past 2030"

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