DBS analyst Nico Chen has maintained their neutral stance on JNJ stock, giving a Hold rating on February 19.
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Nico Chen’s rating is based on a combination of factors impacting Johnson & Johnson’s future performance. One of the key considerations is the upcoming patent expiration of Stelara, a significant revenue contributor, which could lead to the introduction of biosimilars and a potential decline in sales starting in FY25. This anticipated competition creates uncertainty about the company’s ability to maintain its current revenue levels.
On the positive side, Johnson & Johnson has a strong track record of consistent dividend increases over the past 61 years, which enhances its attractiveness to investors seeking stable returns. Additionally, the company is actively developing new drugs, such as Aticaprant and JNJ-2113, which could serve as future growth catalysts. However, given the mixed outlook with both potential risks and opportunities, Nico Chen has opted for a Hold rating, suggesting that investors may want to wait for more clarity on these developments before making significant investment decisions.
According to TipRanks, Chen is a 3-star analyst with an average return of 3.6% and a 54.05% success rate. Chen covers the Healthcare sector, focusing on stocks such as Eli Lilly & Co, Wuxi Biologics (Cayman), and AptarGroup.
In another report released on February 19, Barclays also maintained a Hold rating on the stock with a $166.00 price target.