Argus Research Maintains Buy Rating on Johnson & Johnson, Sets $175.33 Price Target

Argus Research analyst David Toung maintains a Buy rating on Johnson & Johnson, citing a 9.1% average return and a 63.77% success rate. The company has a Moderate Buy consensus and a $175.33 price target, representing a 6.84% upside. Toung has a focus on Healthcare stocks such as Medtronic and Abbott Laboratories.

Johnson & Johnson (JNJ) stock experienced a significant rally, surging 5.88% intraday to hit a new 52-week high near $164.83. The stock's performance was driven by the $850 million acquisition of Proteologix, a biotech firm specializing in novel protein engineering technologies [1]. This acquisition positions J&J to accelerate drug discovery in oncology and immunology, addressing critical gaps in its pipeline.

The acquisition was announced amidst a volatile pharmaceutical sector, where Pfizer (PFE) gained 0.5% while other companies faced regulatory shifts and insulin pricing issues [1]. J&J's strategic move to expand its biotech capabilities highlights its proactive approach to R&D differentiation in an era of regulatory unpredictability.

J&J's stock performance was further bolstered by its robust Q2 2025 earnings report. The company reported adjusted earnings per share (EPS) of $2.77, surpassing the consensus estimate of $2.66. Revenue rose 5.8% year over year to $23.74 billion, beating analysts' expectations of $22.8 billion [2]. The company's strong Q2 performance was driven by solid performance in both its MedTech and Innovative Medicine segments, with a growing pipeline of therapies poised to drive momentum through the rest of the year.

Johnson & Johnson raised its full-year 2025 sales outlook to $93.2–$93.6 billion and adjusted EPS to $10.80–$10.90, reflecting its confidence in its pipeline and potential for game-changing approvals and submissions in various therapeutic areas [2]. Despite potential tariff pressures on pharmaceutical imports, the company has reaffirmed its long-term commitment to U.S. manufacturing, with $55 billion in investments planned over four years.

Technical indicators also support the rally, with the stock trading 3.1% above its 200-day average and showing a bullish crossover in the MACD. Aggressive bulls should consider targeting the $160 call option, offering 102.29% leverage with a delta of 0.48, positioning buyers to capture significant gains if the stock hits $165 by expiration [1].

Investors should watch for FDA updates on J&J’s cancer therapies and proteomics collaborations as potential catalysts for further upside. For now, the company's strategic repositioning and strong earnings report provide a solid foundation for continued growth.

References:
[1] https://www.ainvest.com/news/johnson-johnson-soars-5-88-acquisition-sparks-bullish-surge-technicals-signal-momentum-2507/
[2] https://www.ainvest.com/news/johnson-johnson-stock-price-rally-buy-long-term-growth-2507/