11:05 AM EDT, 10/14/2025 (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:

After Q3 earnings and the announcement of the separation of Orthopedics, we raise our target to $220 from $166. This is based on 19.2x our 2026 EPS estimate and is above JNJ's 10-year historical forward P/E average, justified by JNJ's improving prospects, in our view. We lift our 2025 EPS view to $10.89 from $10.85 and our 2026 EPS estimate to $11.46 from $11.18. JNJ Q3 results topped estimates, demonstrating growth across both the core Innovative Medicine and MedTech segments, with total Q3 sales reaching $24B (up 6.8% Y/Y), above expectations. Today, JNJ also announced an important strategic decision - the separation of Orthopedics into a separate entity, to be completed in 18-24 months. We welcome the decision, which bodes well for JNJ's strategy of portfolio optimization. With this move, we think JNJ can better focus on the higher growth areas of its MedTech segment, such as cardiovascular, surgery, and vision. In our view, Orthopedics is a promising market, which JNJ estimates at $50 billion in size.