Talc has been a serious problem for healthcare stock Johnson & Johnson (NYSE:JNJ) for a long time now. It’s been the subject of lawsuits, and is significantly connected to its latest bankruptcy filing. But now, Johnson & Johnson is turning on those who wrote articles about talc and its connection to mesothelioma. Shareholders are in favor, as Johnson & Johnson shares ticked up in Friday afternoon’s trading session.
Johnson & Johnson—rather, its LTL Management unit that was formed to address the latest bankruptcy and the handling of various talc-related lawsuits—targeted the authors of a study from 2020 found in the American Journal of Industrial Medicine. Said study focused on 75 respondents that noted their sole contact with asbestos was via commercially-available talc products. LTL Management cried foul over that last, noting that several respondents to the study admitted they had been exposed to asbestos elsewhere, and that the study’s authors disregarded this counter-evidence.
The news came out right as Johnson & Johnson was reporting earnings, and also offered some optimistic guidance. Johnson & Johnson reported $2.80 per share in earnings against projections calling for $2.62, and posted $25.53 billion in revenue against the $24.63 billion analysts expected. Wins all around, and it only got better from there as it hiked its full-year revenue guidance from $98.8 billion in April to $99.8 billion now.
That may be good news, but analysts are still somewhat skeptical. Johnson & Johnson stock is considered a Moderate Buy by analyst consensus, backed by three Buy ratings and six Hold. Further, with an average price target of $184.13, Johnson & Johnson stock offers a modest 8.07% upside potential.
