Is JNJ Stock Setup For A Rerating?

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Johnson & Johnson (JNJ) stock is currently trading at $222.51 with a P/E of 25.5, which is above its 3-year average. Despite this, a Trefis analysis suggests a potential 28% upside to $284.75 by sustaining revenue growth near 9.8% annually and a partial mean-reversion of its P/E multiple. The analysis highlights revenue compounding and share buybacks as key drivers, but also cautions on potential risks from a more violent P/E compression or slowed revenue growth.

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