RBC Capital Raises J&J Price Target to $290 on Pharma Strength

RBC Capital raised its price target on Johnson & Johnson shares (NYSE:JNJ) to $290 from $287 while maintaining an Outperform rating, citing strong pharmaceutical performance driven by core drug sales despite near-term headwinds.

"RBC Capital raised its price target on Johnson & Johnson shares to $290 from $287 while maintaining an Outperform rating, highlighting pharmaceutical strength anchored by Tremfya and Icotyde sales despite headwinds," according to an Investing.com report.

Q3 2026 Sales Projections and Drivers

According to the Investing.com report, RBC Capital projects third-quarter 2026 sales will come in 1% ahead of consensus estimates. This outperformance is expected to be propelled by pharmaceutical operations running 1.3% above expectations, specifically anchored by strong sales of Tremfya and Icotyde.

Despite the positive sales outlook, the firm's third-quarter earnings per share estimate stands at $2.55, trailing the broader Wall Street consensus of $2.81 by 9%. This projected variance stems directly from the financial impact of closing the Firefly and Sail transactions during the third quarter of 2026.

Full-Year Guidance and Comparative Analyst Actions

Johnson & Johnson's updated full-year guidance midpoint rests at $11.04, with a targeted range spanning from $10.96 to $11.11 per share. This represents a downward adjustment from previous guidance figures which stood at $11.68.

Other major financial institutions are actively revising their outlooks on the healthcare giant alongside RBC's target shift. UBS recently reiterated its Buy rating and lifted its own price target on Johnson & Johnson to $320, a move catalyzed by a successful pivotal Phase III study evaluating Caplyta for bipolar mania meeting its primary endpoint.

What Is Driving Pharmaceutical Focus?

As major pharmaceutical companies navigate varying pipeline catalysts and corporate restructuring, analyst evaluations increasingly hinge on specific flagship drug trajectories. Products like Tremfya and Icotyde serve as critical revenue pillars capable of offsetting transitional expenses such as recent M&A closures, shaping how institutional equity researchers value large-cap pharmaceutical equities through multi-quarter forecasts.