Johnson & Johnson Earnings: Solid Growth to Start the Year, but We Expect That to Slow by Midyear

We are holding steady to our $164 per share fair value estimate for Johnson & Johnson following first-quarter results that largely matched our expectations. However, management slightly increased full-year 2024 sales and earnings guidance, but that was not meaningful enough to affect our fair value estimate. We continue to view the stock as undervalued, with the market not fully appreciating J&J's innovative products that should propel long-term growth and reinforce the firm's wide moat.