Johnson and Johnson is a buy as executives project strong medicine sales over the next two years and as the company expands its drug-making operations in the U.S., according to Wells Fargo. The bank upgraded the pharma giant to overweight from equal weight. It also raised its price target for shares to $212 from $170, implying about 14% upside. “Given the potential upside to JNJ’s Pharma business, lower Pharma tariff and pricing risk, and investor confidence that JNJ can grow through the Stelara LOE, we could see JNJ’s valuation move higher,” analyst Larry Biegelsen said Friday in a note to clients. Several of the drugmaker’s cancer-related treatments, including Rybrevant, have seen higher demand in recent quarters and are poised to gain even more traction in the market, Wells Fargo said. Biegelsen also highlighted that Johnson & Johnson executives recently expressed confidence that their pharmaceutical sales will improve each year between 2025 and 2027, despite the Street’s estimates that demand for the firm’s drugs will deaccelerate during that time. “We believe JNJ’s recent track record bodes well for its ability to meet/exceed its target,” Biegelsen wrote, adding that Johnson & Johnson previously exceeded its $57 billion pharmaceutical revenue goal for 2025 a year ahead of schedule. More broadly, the company’s margins are likely to improve as tariff tailwinds from last April moderate, according to Wells Fargo. The drug company is also poised to become more resilient to future trade tailwinds as it pours massive amounts of funds into ramping up its pharmaceutical manufacturing stateside, the bank said. J & J unveiled plans to invest $55 billion in its research and drug manufacturing businesses in the U.S. over the next four years, in addition to pledging to pour $2 billion to expand its pharmaceutical manufacturing in North Carolina. Wells Fargo’s rating for Johnson & Johnson falls in line with the majority of the Street’s calls on the stock. Fourteen of the 27 analysts who cover the company have a buy or strong buy rating on shares, according to LSEG data. Johnson & Johnson shares ticked up roughly 1% in premarket trading on Friday. The stock has risen nearly 16% over the past year.