Johnson & Johnson (JNJ – Research Report), the Healthcare sector company, was revisited by a Wall Street analyst yesterday. Analyst Terence Flynn from Morgan Stanley maintained a Hold rating on the stock and has a $163.00 price target.
Terence Flynn’s rating is based on a combination of factors including the recent positive results from the Phase 2b trial of icotrokinra, an oral IL-23 inhibitor developed by Johnson & Johnson in partnership with PTGX. The trial showed promising clinical remission rates in patients with moderately to severely active Ulcerative Colitis, suggesting competitive efficacy compared to other approved treatments. However, Flynn notes the importance of awaiting full data, particularly regarding endoscopic improvement, before making a more definitive assessment.
Additionally, while the potential sales forecast for icotrokinra is optimistic, with projections of over $5 billion, Flynn applies a probability of success adjustment to these figures. This cautious approach reflects the inherent uncertainties in drug development and market dynamics. Overall, the Hold rating indicates a balanced view, recognizing the potential upside from icotrokinra while also considering the risks and uncertainties that remain.
JNJ’s price has also changed slightly for the past six months – from $167.380 to $167.700, which is a 0.19% increase.
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