Johnson & Johnson Stock Forecast:
According to 11 analysts, the average target price for Johnson & Johnson stock over the next 12 months is USD 168.20. The average analyst rating for the stock is “Buy.” However, Stock Target Advisor‘s own analysis suggests a slightly bearish outlook for Johnson & Johnson based on 5 positive signals and 9 negative signals. As of the last closing, the stock price of Johnson & Johnson was USD 163.63, indicating a change of -0.37% over the past week. Over the past month, the stock has increased by +6.01%, but it has experienced a decrease of -10.24% over the last year.
Johnson & Johnson News:
Johnson & Johnson (J&J), is currently grappling with a significant challenge as it seeks to resolve thousands of lawsuits alleging that its talc products cause cancer. The company has proposed an $8.9 billion settlement, but its plans face a crucial hurdle this week as a U.S. bankruptcy judge in New Jersey deliberates whether or not a J&J subsidiary may seek bankruptcy protection to resolve these claims. This is the second attempt by the subsidiary, LTL Management, to file for bankruptcy, as the first attempt was dismissed in April by a U.S. appeals court on the grounds that it did not meet the requirements for financial distress necessary to be eligible for bankruptcy protection.
The proposed $8.9 billion settlement aims to address the extensive litigation Johnson & Johnson has faced over allegations that its talcum powder products contain asbestos, a known carcinogen, and have caused ovarian cancer and mesothelioma in consumers. Thousands of individuals have filed lawsuits against the company, claiming that regular use of J&J’s talc products led to their cancer diagnoses. J&J has consistently denied these allegations and has maintained that its talc products are safe and do not contain asbestos.
The decision by the U.S. bankruptcy judge in New Jersey will play a crucial role in determining the course of action for resolving these lawsuits. If the judge permits the J&J subsidiary, LTL Management, to file for bankruptcy, it could potentially create a trust to compensate claimants and establish a resolution framework for the pending lawsuits. However, if the bankruptcy filing is not approved, Johnson & Johnson will likely face continued litigation and potentially higher settlement costs.
