12:28 PM EDT, 07/18/2024 (MT Newswires) -- Johnson & Johnson's ( JNJ ) shares are trading at fair value based on a sum-of-the-parts analysis after Q2 results and 2024 revenue guidance was mostly in line with expectations, Morgan Stanley said Thursday in a report.

The growth outlook for each of the company's segments is similar to a peer group average, the report said. Johnson & Johnson ( JNJ ) reiterated 2024 revenue guidance of $88 billion to $88.4 billion with Morgan Stanley projecting $88.6 billion.

Johnson & Johnson ( JNJ ) cut its 2024 earnings guidance to $9.97 to $10.07 a share from $10.57 to $10.72 to reflect acquisitions including Shockwave Medical, Proteologix and Yellow Jersey Therapeutics, the report said.

Morgan Stanley cuts its 2024 EPS forecast to $9.99 from $10.55, trailing the consensus estimate of $10.45, after accounting for Yellow Jersey's research and development costs.

Morgan Stanley reduced its 2025 EPS estimate to $10.37 from $10.55 and to $11.89 from $11.98 for 2026.

Morgan Stanley raised its price target on Johnson & Johnson ( JNJ ) to $169 from $167 and maintained its equal-weight rating.

Johnson & Johnson ( JNJ ) shares were little changed in recent trading Thursday.

Price: 156.60, Change: +0.01, Percent Change: +0.01