Johnson & Johnson (JNJ) is positioned for upside heading into 2026 as multiple medtech and immunology catalysts support the company's growth outlook, RBC Capital Markets said in a note Thursday.
RBC said Johnson & Johnson's top line target to "exceed 5%" growth in 2026 is a base case and that the company is positioned towards the upper end of between 5% to 7%.
The firm also flagged the planned separation of its orthopedics business as a meaningful earnings contributor, estimating about 75 basis points of sales and margin accretion as a base case post separation at the end of 2027.
RBC said the combination of a disciplined capital allocation strategy, pipeline momentum, and strong free cash flow puts the company "on a path to deliver competitive growth."
RBC reiterated its outperform rating and raised its price target to $230 from $209.
Price: 210.38, Change: +3.84, Percent Change: +1.86
Comments