BofA Sees J&J’s Premium Multiple as Justified

Johnson & Johnson (NYSE:JNJ) is included among the 12 Best Dogs of the Dow to Invest in.

BofA Sees J&J’s Premium Multiple as Justified

On December 15, BofA raised its price target on Johnson & Johnson (NYSE:JNJ) to $220 from $204. The firm kept a Neutral rating. The firm says J&J’s premium multiple “looks appropriate for its growth plus asset mix.” It is now valuing the stock based on a new FY27 EPS estimate.

Johnson & Johnson (NYSE:JNJ) has already had a big year. Shares are up more than 45% in 2025. However, things turned a bit on December 12, when a California jury awarded $40m to two women who said Johnson & Johnson’s baby powder caused their ovarian cancer. The case was heard in the Los Angeles Superior Court.

The jury awarded $18m to Monica Kent and Deborah Schultz and her husband received $22m. Jurors said the company knew for years that its talc-based products were dangerous and did not warn consumers.

Johnson & Johnson (NYSE:JNJ) says it will fight the decision. Erik Haas, the company’s worldwide vice-president of litigation, said J&J plans to “immediately appeal this verdict and expect to prevail as we typically do with aberrant adverse verdicts.”

This case is part of a much larger wave. Court filings show more than 67,000 plaintiffs have sued J&J, claiming cancer diagnoses tied to baby powder and other talc products. The company maintains that its products are safe, asbestos-free, and do not cause cancer. J&J stopped selling talc-based baby powder in the US in 2020. It switched to a cornstarch version instead.

Away from the lawsuits, the business itself hasn’t changed much. Johnson & Johnson (NYSE:JNJ) remains a global healthcare heavyweight. Its focus sits squarely on Innovative Medicine and MedTech, spanning oncology, immunology, surgical tools, and steady investment in R&D and global health work.

While we acknowledge the potential of JNJ as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an AI stock that is more promising than JNJ and that has a 100x upside potential, check out our report about the cheapest AI stock.

READ NEXT: 13 Best Blue Chip Stocks to Buy Under $50 and11 Best Low Priced Dividend Stocks to Buy According to Analysts.

Disclosure: None.