Business & Finance
Johnson & Johnson shares reach record high as UBS raises price target to $320
Analysts point to sustained revenue growth, product pipeline momentum, and limited near-term patent expiration risks.
The short version
- Johnson & Johnson stock reached a record close above $275, gaining 33% year-to-date amid broader investor interest in defensive sectors.
- UBS raised its price target for the company from $280 to $320, projecting annual revenue growth exceeding 8% through the rest of the decade.
- Key drivers cited include strong performance in oncology and immunology treatments, alongside the rollout of the Ottava robotic surgery system.
- The long-term outlook depends heavily on the commercial execution of newly approved drugs and market adoption of surgical robotics.
Key facts
- Johnson & Johnson shares closed at a record high above $275 per share, completing a seven-session winning streak and marking a 33% gain year-to-date.[CNBC]
- UBS raised its price target for Johnson & Johnson from $280 to $320 per share, citing expectations of an 8%-plus compound annual growth rate and higher profit margins.[CNBC]
- Cancer therapy Darzalex, which retains U.S. patent protection through at least 2029, generated over $4 billion in sales during the second quarter with nearly 18% growth.[CNBC]
- Immunology drug Tremfya recorded a 71% sales increase in the second quarter, while the newly FDA-authorized oral treatment Icotyde represents what UBS estimates could be a $10 billion-plus peak sales asset.[CNBC]
What remains uncertain
- The rate at which the Ottava robotic surgery system will achieve commercial adoption against entrenched competitors such as Intuitive Surgical remains uncertain.[CNBC]
- The eventual revenue trajectory after Darzalex loses U.S. patent exclusivity in 2029 depends on the actual pace of generic erosion in the next decade.[CNBC]