Investor reaction to Johnson & Johnson 2Q2021 financial results mixed


Johnson & Johnson, the largest pharmaceutical player, has reported results for 2Q 2021.

Revenue was slightly above our forecast and reached $ 23.31 billion (up 27.14% YoY). The sub-segment of oncology continues to show excellent results. It grew by 26.66% y / y and was fixed at $ 3.54 billion.

The infectious disease sub-segment, which includes Janssen Pharmaceuticals, vaccine maker Johnson & Johnson, posted much lower-than-expected revenue growth. It rose the most by 17.08% y / y ($ 1.03 billion), with expected double growth. Vivian Blumenthal assumed that the rather sluggish dynamics of stock growth (as of 18:00 Moscow time, JNJ quotes are growing by 0.15%, while the S&P 500 index is growing by 0.57%) is partly because of this result.

Another reason is the fact that the company's financial results came out a day after new research showed that the J&J vaccine was less effective against the delta strain than the original virus.

Our February 2021 recommendation for Johnson & Johnson shares with a target price of $ 181.95 remains valid. Thus, the upside potential for the pharmaceutical giant shares is 7.75% of the current price over the next 6 months.




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