12:59 PM EST, 01/23/2025 (MT Newswires) -- Johnson & Johnson ( JNJ ) is likely to achieve its 2025 guidance despite challenges after the drugmaker's Q4 results exceeded estimates, RBC Capital Markets said in a note emailed Thursday.

RBC forecasts 2025 sales of $89.66 billion, up 3% year over year in operational, and adjusted earnings per share of $10.60, both falling within the company's guidance of 2.5% to 3.5% and $10.50 to $10.70, respectively, according to the note.

Johnson & Johnson ( JNJ ) exceeded Q4 sales and earnings-per-share expectations driven by the innovative medicine division, and projects 2025 EPS growth despite challenges like Stelara biosimilar entry, foreign exchange headwinds, and Medicare Part D redesign, RBC said.

The company is progressing with its third bankruptcy attempt related to talc litigation with legal experts believing a resolution is achievable, and a favorable outcome could significantly benefit the stock, according to the note.

The firm said that Johnson & Johnson ( JNJ ) reaffirmed its strategic approach to mergers and acquisitions and will be focusing on areas with internal capabilities and long-term value.

RBC reiterated its outperform rating on the company's stock and its $181 price target.

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