Goldman Sachs Reaffirms Conviction Buy on Johnson & Johnson (JNJ) Before Q2 Earnings

Johnson & Johnson (NYSE:JNJ) ranks among the best forever stocks to invest in. Prior to the company’s second-quarter earnings report on July 16, Goldman Sachs reaffirmed its Conviction Buy rating on Johnson & Johnson (NYSE:JNJ) on July 10 with a price target of $177.

Although it recognizes that there will be “several moving parts up and down the P&L,” Goldman Sachs expects that Johnson & Johnson (NYSE:JNJ) will provide earnings that are relatively consistent with consensus forecasts. The firm predicts that key products in the Innovative Medicine division, such as Tremfya (about 2% over consensus) and Carvykti (about 10% above consensus), would perform better than expected.

According to Goldman, the evolution of JNJ’s Innovative Medicine division, which accounts for roughly 65% of revenues but 83% of profits, will have a greater impact on stock performance than the MedTech division.

Goldman also adds that, in contrast to its pharmaceutical peers and the overall market, JNJ’s earnings per share and revenue revisions have trended more favorably since the company’s impressive first-quarter results in its Innovative Medicines division.

Johnson & Johnson (NYSE:JNJ) is a notable name in the healthcare industry, which includes sub-sectors like pharmaceuticals, medical equipment, and consumer health products. The company is known for creating medications to treat a variety of conditions and diseases, including cancer, diabetes, and HIV/AIDS.

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