RBC Sees Johnson & Johnson (JNJ) Well Positioned to Manage Legal Overhang

Johnson & Johnson (NYSE:JNJ) is included among the 15 Best Wide Moat Dividend Stocks to Invest in.

On February 3, RBC Capital raised its price target on Johnson & Johnson (NYSE:JNJ) to $255 from $240 and reiterated an Outperform rating. The firm said the company is unlikely to reverse the core implications of the Daubert ruling. Even so, the analyst noted that the litigation could stretch on for years, handled case by case and year by year. RBC added that Johnson & Johnson’s strong balance sheet and improving operating trends give it room to manage those risks.

The view comes after Johnson & Johnson reported full-year results for 2025 last month. It was another steady year. Revenue rose 6% to $94.2 billion, in line with what investors have grown accustomed to from the company. Growth was slower in 2024, at about 4%, but single-digit increases have long been the norm for a business of this size. Lately, the tone from management has been more confident. CEO Joaquin Duato said the company sees a clearer path to faster expansion, noting, “We have line of sight to double-digit growth by the end of the decade.”

Oncology sits at the center of that plan. Johnson & Johnson wants to become the world’s leading cancer drugmaker and is targeting $50 billion in oncology revenue over time. That would be roughly double what the segment generated in the most recent year.

Looking ahead, management is projecting 2026 revenue of $100.5 billion, which implies growth of around 6.7%. The trend in the top line suggests momentum is building, something growth-oriented investors tend to watch closely.

Johnson & Johnson (NYSE:JNJ) operates across healthcare through its Innovative Medicine and MedTech segments, developing and selling a wide range of pharmaceutical and medical technology products.

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Disclosure: None.