Morgan Stanley Upgrades Johnson & Johnson to Overweight, Increases PT to $262

Johnson & Johnson (NYSE:JNJ) is one of the 10 Hottest Stocks to Buy in 2026.

On January 28, TheFly reported that Morgan Stanley upgraded Johnson & Johnson (NYSE:JNJ) from Equal Weight to Overweight, increasing the price target from $200 to $262.

Terence Flynn from Morgan Stanley remains bullish on the company as he expects higher estimates from Johnson & Johnson’s new products. Based on this, Flynn also sees a higher valuation multiple for the upgrade. The analyst expects JNJ to surpass earnings driven by several new product cycles, estimating almost 20% above consensus estimates. Wall Street, on average, expects JNJ to post adjusted earnings per share of $2.69 for the current quarter.

Flynn mentioned that the company offers one of the most robust new product cycle offerings in the biopharma industry. The analyst has also raised estimates for the company’s products, including Tremfya, Icotyde, Tecvayli, and Darzalex.

Over the past year, through January 30, Johnson & Johnson (NYSE:JNJ) shares have returned over 48.50%. Of the 28 analysts covering JNJ, 57% rate it a Buy, 36% a Hold, and 7% a Sell. The median price target of $240 highlights an upside of just under 6%, while Morgan Stanley’s $262 price target indicates an upside of 15.25%.

Johnson & Johnson (NYSE:JNJ) is engaged in the research, development, manufacturing, and sale of a range of healthcare products globally. The company operates through two segments: Innovative Medicine and MedTech.

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Disclosure: None. This article is originally published at Insider Monkey.