Jim Cramer has recently expressed increased optimism regarding pharmaceutical company Johnson & Johnson. His positive outlook is largely based on the firm's cancer drug portfolio and its decision to spin off its orthopaedic business.
Johnson & Johnson shares have gained 47.8% over the past year and are up 5.5% year-to-date. In early January, Bernstein raised the company's share price target to $208 from $193, maintaining a Market Perform rating. The financial firm cited clearer visibility into macroeconomic uncertainties as a contributing factor.
Cramer praised the company's business spinoff strategies and its cancer portfolio. "I hope that the people at JPMorgan for their 44th Healthcare Conference don't take this personally," Cramer said. "This company did not present and I am now willing to say that after Eli Lilly it was the best. This has been a remarkable move, this is JNJ. Now it had been kept down, the talc lawsuits, they decided to stop that."
Mar Vista U.S. Quality Strategy also commented on Johnson & Johnson in its fourth quarter 2025 investor letter. "Johnson & Johnson stock demonstrated strong performance in Q4, driven by robust financial results, upward guidance revisions, and accelerating growth for the pharmaceutical and medical technology segments," the letter stated. "The company's consistent execution across key business segments and positive market sentiment, despite a significant headwind from Stelera generics, contributed to its outperformance relative to broader market indices. Management continues to expect 5-7% revenue growth through 2030 which exceeds consensus estimates."