Third Point Capital, led by investor Dan Loeb, has reportedly acquired a stake in Kenvue (KVUE), the company known for producing Tylenol and Neutrogena. This move positions Third Point as the third activist hedge fund to engage with the consumer health group in recent months, potentially intensifying pressure on Kenvue’s management.
Having been spun off from Johnson & Johnson (JNJ, Financial) earlier in 2023, Kenvue is increasingly perceived as a potential acquisition target. The involvement of such activist investors might influence strategic decisions or changes within the company's operations and governance.
Wall Street Analysts Forecast
Based on the one-year price targets offered by 24 analysts, the average target price for Johnson & Johnson (JNJ, Financial) is $170.64 with a high estimate of $185.00 and a low estimate of $150.00. The average target implies an upside of 10.67% from the current price of $154.19. More detailed estimate data can be found on the Johnson & Johnson (JNJ) Forecast page.
Based on the consensus recommendation from 26 brokerage firms, Johnson & Johnson's (JNJ, Financial) average brokerage recommendation is currently 2.3, indicating "Outperform" status. The rating scale ranges from 1 to 5, where 1 signifies Strong Buy, and 5 denotes Sell.
Based on GuruFocus estimates, the estimated GF Value for Johnson & Johnson (JNJ, Financial) in one year is $186.30, suggesting a upside of 20.82% from the current price of $154.19. GF Value is GuruFocus' estimate of the fair value that the stock should be traded at. It is calculated based on the historical multiples the stock has traded at previously, as well as past business growth and the future estimates of the business' performance. More detailed data can be found on the Johnson & Johnson (JNJ) Summary page.
JNJ Key Business Developments
Release Date: April 15, 2025
- Worldwide Sales: $21.9 billion, increased 4.2% despite a 470 basis point headwind from STELARA.
- Net Earnings: $11 billion, with diluted earnings per share of $4.54.
- Adjusted Net Earnings: $6.7 billion, with adjusted diluted earnings per share of $2.77, up 1.9% and 2.2% respectively.
- Innovative Medicine Sales: $13.9 billion, increased 4.2% despite an 810 basis point headwind from STELARA.
- MedTech Sales: $8 billion, increased 4.1%.
- Free Cash Flow: Approximately $3.4 billion.
- Dividend Increase: 4.8%, marking the 63rd consecutive year of increases.
- Operational Sales Growth Guidance: Increased by $700 million, now expected to be 3.3% to 4.3% for the full year.
- Adjusted Operational Sales Growth: 2% to 3% compared to 2024.
- Interest Income and Expense: Net income of $128 million, down from $209 million in Q1 2024.
- Effective Tax Rate: 19.3%, up from 12.4% in the same period last year.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
- Johnson & Johnson (JNJ, Financial) delivered strong operational sales growth of 4.2% in Q1 2025, despite headwinds from STELARA's loss of exclusivity.
- The company's Innovative Medicine sector achieved 4.2% operational sales growth, with 11 key brands growing double digits.
- MedTech sector showed 4.1% operational sales growth, driven by strong performance in cardiovascular businesses and surgical vision.
- Johnson & Johnson (JNJ) announced a commitment to invest over $55 billion in the US over the next four years, enhancing manufacturing and R&D capabilities.
- The company increased its dividend for the 63rd consecutive year, reflecting its commitment to returning capital to shareholders.
Negative Points
- STELARA faced an approximate 810 basis points headwind due to biosimilar competition, impacting overall sales growth.
- Gross margins were below recent trends, affected by the loss of exclusivity for STELARA and Part D redesign.
- The orthopedic segment experienced a decline of 3.1%, impacted by competitive pressures and one-time events.
- Tariffs, particularly those related to China, are expected to have a significant impact on costs, with a $400 million impact anticipated in 2025.
- The company faces ongoing litigation challenges related to the Talc bankruptcy ruling, which could impact future financial performance.
