03:20 PM EDT, 04/03/2025 (MT Newswires) -- CFRA, an independent research provider, has provided MT Newswires with the following research alert. Analysts at CFRA have summarized their opinion as follows:
We maintain our 12-month target price at $163, 14.6x our 2026 EPS estimate, a discount to JNJ's historical forward P/E average. We retain our 2025 EPS estimate at $10.60 and our 2026 EPS view at $11.18. Yesterday, JNJ successfully closed the $14.6 billion Intra-Cellular Therapies (ITCI) acquisition, which it announced on January 13. While expected to close before the end of Q2, the deal was finalized slightly earlier than anticipated, in our view. We updated our revenue estimates following the announcement. We pencil in $90.99 billion in total sales versus $90.33 billion earlier, pointing now to a slightly improved 2.4% Y/Y increase. We expect a modest revenue boost to the core Innovate Segment sales this year, which we forecast to be around $57.4 billion. We expect more significant contributions from the ITCI acquisition starting in 2026. With pharmaceuticals exempt from reciprocal tariffs following yesterday's announcement, we are seeing a positive reaction for JNJ, with shares up more than 2.5% today. Yet, with MedTech making around 36% of the company's revenues, we will be looking to get more clarity during the upcoming Q1 earnings call to assess the impact of tariffs on this segment.