CFRA, an independent research provider, has provided MT Newswires with the following research alert. Analysts at CFRA have summarized their opinion as follows:
We keep our target price at $162, 14.8x our 2024 EPS estimate, below JNJ’s five-year historical forward P/E average. We lift our 2023 EPS estimate by $0.14 to $10.18 and keep our 2024 EPS estimate at $10.94. Q3 EPS of $2.66 vs. $2.23 (+19.3% Y/ Y) was $0.16 above our estimate and $0.14 above consensus. Q3 revenues of $21.4B outperformed expectations, up 6.8% Y/Y, $302M above consensus, due to better-than-anticipated sales performance in the U.S. (+11.1% Y/Y), offsetting slow growth internationally (+1.6% Y/Y). Following the separation with Kenvue, JNJ reports two main businesses: Pharma, going forward referred as Innovative Medicine (65% of total, +5.1% Y/Y), and Medtech (35% of total, +10% Y/Y). Robust growth in Medtech was driven by Interventional Solutions (+47% Y/Y), which also includes contributions from Abiomed. Within Innovative Pharma, Oncology (+11.6% Y/Y) and Immunology (+13.1% Y/Y) sales growth were strong, led by key drugs Darzalex (+21.8% Y/Y), Stelara (+17% Y/Y), and Tremfya (+22.2% Y/Y).