What’s Next For Johnson & Johnson Stock After Beating Q1 Earnings? (2024)

FAQs

What’s Next For Johnson & Johnson Stock After Beating Q1 Earnings? ›

We estimate Johnson & Johnson's Valuation to be $180 per share, reflecting over 20% upside from its current levels of $145. Our forecast is based on a 17x P/E multiple for JNJ and expected earnings of $10.70 on a per-share and adjusted basis for the full year 2024.

What happens to JNJ stock when the company splits? Once Johnson and Johnson splits, JNJ stock will only give traders and investors exposure to the medical device and pharmaceutical proceeds of the company. The new company, which will be listed as Kenvue, will trade separately.

JNJ Stock 12 Month Forecast

Based on 14 Wall Street analysts offering 12 month price targets for Johnson & Johnson in the last 3 months. The average price target is $172.46 with a high forecast of $215.00 and a low forecast of $150.00. The average price target represents a 3.51% change from the last price of $166.61.

Here's a snapshot of the JNJ stock split history: Data source: Johnson & Johnson. Although Johnson & Johnson has no upcoming stock split, the company plans to split into two by spinning off its consumer business (Kenvue) in November 2023.

Johnson & Johnson has decided to offer to exchange part of its remaining interest in Kenvue, consisting of 1,533,830,450 shares of Kenvue Common Stock, which represents approximately 80.1% of the outstanding common stock of Kenvue as of July 2, 2023, for outstanding shares of J&J Common Stock.

JNJ Signals & Forecast

The Johnson & Johnson stock holds buy signals from both short and long-term Moving Averages giving a positive forecast for the stock. Also, there is a general buy signal from the relation between the two signals where the short-term average is above the long-term average.

Highlights and Key Points: JNJ stock Forecast 2024-2030

JNJ assets have consistently grown over the past decade, with projections extending until 2030. Analysts predict the stock could reach $164.77 per share by the end of 2024 with the lowest expected price of $40 and the most optimistic forecast of around $215.

Johnson & Johnson Stock Forecast & Predictions: 1Y Price Target $173.63 | Buy or Sell NYSE: JNJ 2024 | WallStreetZen.

Based on analysts offering 12 month price targets for JNJ in the last 3 months. The average price target is $172.46 with a high estimate of $215 and a low estimate of $150.

According to analysts, JNJ price target is 171.37 USD with a max estimate of 215.00 USD and a min estimate of 150.00 USD.

What do shareholders get from the JNJ spinoff? ›

What does the J&J split mean for shareholders? If you currently own shares of Johnson & Johnson, when the company splits, you will own shares of both Johnson & Johnson – which will be the new pharmaceutical/medical device business – as well as shares of Kenvue, the new consumer health business.

Say you have one share of a company's stock. If the company opts for a 2-for-1 stock split, the company would grant you an additional share, but each share would be valued at half the amount of the original. After the split, your two shares would be worth the same as the one share you started with.

The total value of shares held by all shareholders should stay the same, maintaining the company's market value. When a company performs a forward stock split, the process is seamless for shareholders. The additional shares are automatically credited to shareholders' accounts by their brokers.

Under the terms of the exchange offer, 8.0324 shares of Kenvue common stock will be exchanged for each share of Johnson & Johnson common stock accepted in the exchange offer.

We estimate Johnson & Johnson's Valuation to be $180 per share, reflecting over 10% upside from its current levels of $158. Our forecast is based on a 17x P/E multiple for JNJ and expected earnings of $10.70 on a per-share and adjusted basis for the full year 2024.

Kenvue is valued at about 18 times projected 2023 earnings and yields 3.4%. J&J yields 2.8%. Kenvue isn't a high-growth company—earnings growth could run in the mid-single digits off the 2023 base in the coming years—but it has a stable and well-known group of consumer health brands.

The investor, generally, will receive one share of the spin-off for a pre-determined amount of shares of the parent company that the investor holds. For example, Bristol Myers Squibb (BMY) spun off Zimmer Holdings, Inc.

Johnson & Johnson is selling its remaining shares in Kenvue Inc., the consumer-health business that it spun out last year. The company will exchange the 182.3 million shares of Kenvue's common stock it still owns for Johnson & Johnson debt held by Goldman Sachs and J.P. Morgan, Kenvue said in a statement on Monday.

A split-up is a financial term describing a corporate action in which a single company splits into two or more independent, separately-run companies. Upon the completion of such events, shares of the original company may be exchanged for shares in one of the new entities at the discretion of shareholders.

When J&J announced its exchange offer in July, the company owned roughly 1.7 billion shares of Kenvue stock, representing about 90% of ownership in the company. The company offered to trade up to 1.54 billion of those Kenvue shares in exchange for outstanding J&J shares at a 7% discount.