On Tuesday, BofA Securities maintained its Neutral rating on shares of Johnson & Johnson (NYSE:JNJ) with a price target of $170.00.
The firm's assessment followed a discussion with Johnson & Johnson’s President of US Solid Tumor Oncology, which highlighted updates from the American Society of Clinical Oncology (ASCO) and the company's long-term growth drivers in oncology.
The conversation with Biljana Naumovic centered on the prospects of Johnson & Johnson's oncology segment, particularly its multiple myeloma (MM) franchise and its treatments for EGFR lung cancer and bladder cancer.
"Overall, there is a lot to like on the long-term outlook of J&J™s oncology business given the continued growth of its MM franchise as well as late-stage/commercial assets entering the multi-billion-dollar market opportunities in EGFR lung and bladder cancer," said BofA analysts.
Johnson & Johnson's updates from ASCO, particularly regarding Rybrevant for EGFR lung cancer, were seen as positive, with a subcutaneous (subq) profile that could potentially lead to increased adoption in first-line (1L) treatment settings.
The firm's statement emphasized the solid long-term prospects for Johnson & Johnson's oncology offerings, including Rybrevant, TARIS for bladder cancer, and advancements in radiotherapy and antibody-drug conjugates (ADC) for prostate cancer.
In other recent news, Johnson & Johnson (J&J) faces significant developments on multiple fronts. The company is implicated in the $2.13 billion legal fee distribution resulting from opioid crisis settlements, with the total financial impact of opioid settlements now surpassing $50 billion. RBC Capital has maintained an Outperform rating on J&J's stock, following the presentation of positive data at a recent analyst meeting.
J&J's DePuy Synthes has received FDA clearance for its VELYS Robotic-Assisted Solution for partial knee replacements. This expands the application of the VELYS robotic platform, which is already in use for total knee replacements.
Lastly, Citi has reduced its price target for J&J to $180, while maintaining a 'Buy' rating, following the completion of J&J's acquisition of Shockwave Medical (NASDAQ:SWAV). The acquisition is expected to result in a slight earnings dilution in 2024 and 2025, but will become accretive to earnings in 2026.
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