From Financial Modeling Prep: 2025-04-01 12:58:00

TD Cowen reaffirmed its Buy rating and $185 price target on Johnson & Johnson (JNJ) after a federal judge rejected the company’s bankruptcy-based proposal to settle talc-related lawsuits, causing the stock to drop over 5% intra-day. The court criticized the voting process for the proposed trust structure. JNJ has yet to respond officially.

Despite the setback, TD Cowen is optimistic due to JNJ’s $11.6 billion reserve for the talc settlement out of a $13.5 billion nominal value. This reserve helps mitigate financial impact. Previous failed settlement attempts suggest any stock weakness should be limited and short-lived.

With strong fundamentals in pharmaceutical and medtech, TD Cowen believes Johnson & Johnson is well-positioned for long-term success despite ongoing talc litigation. The company’s ability to absorb potential downsides and history of navigating disappointments suggest resilience in the face of challenges.



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