-- Johnson & Johnson (JNJ) reported above-peer top-line growth in Q1 and a limited loss-of-exclusivity exposure, but that is already reflected in the company's premium multiple, BofA Securities said in a client note Wednesday.
In its Q1 results, Johnson & Johnson did not provide any material research and development pipeline updates, with the investor call focusing on the Icotyde plaque psoriasis drug launch and reasons for perceived "softness" in MedTech, the BofA analysts said.
"Overall, 1Q offered nothing thesis changing," the analysts said.
BofA said that the company's Tremfya drug has solidified its "number two" position in the drug target category, aided by subcutaneous Crohn's induction, with that benefit expected to neutralize when competitor AbbVie (ABBV) launches subcutaneous Skyrizi in 2027.
The analysts updated their Tremfya peak sales estimate to $13 billion from $11 billion.
BofA retained a neutral rating on the stock and increased its price target to $254 from $253.
Price: $238.42, Change: $-1.68, Percent Change: -0.70%