Johnson & Johnson's Enterprise Review Expected to Sharpen Outlook, Morgan Stanley Says

10:57 AM EDT, 10/14/2026 (MT Newswires) -- Johnson & Johnson's (JNJ) review of its enterprise business on Dec. 8 is expected to sharpen the company's long-term outlook, Morgan Stanley said Wednesday in a report. The company is expected to give investors more detail on its 2027 sales, free cash flow and EPS, though it may stop short of issuing formal guidance, the report said. Johnson & Johnson is also seen providing updated peak-sales ranges for key assets, a revenue compound annual growth rate extending beyond 2030, and other targets proforma for the planned separation of its orthopedics business, Morgan Stanley said. Management has indicated that 2027 reported sales should be broadly comparable to 2026 after adjusting for the roughly 100-basis-point benefit from the 53rd week, with earnings expected to rise slightly faster than sales, Morgan Stanley said. The company reiterated its goal of achieving double-digit revenue expansion by the end of the decade, the report said. Morgan Stanley raised its 2027 expense assumptions and adjusted its tax rate to reflect updated guidance, resulting in a lower full-year 2027 EPS estimate of $12.27, down from $12.66. Morgan Stanley lowered its price target on Johnson & Johnson stock to $292 from $294 and maintained its overweight rating. Price: 251.61, Change: +3.00, Percent Change: +1.21