J&J talc risk more than accounted for in current valuation, says Credit Suisse.
Credit Suisse analyst Vamil Divan said a $29M jury award to a woman who claimed that asbestos in baby powder led to her development of mesothelioma has brought potential litigation risk for Johnson & Johnson back into the headlines. However, he spoke to Johnson & Johnson and they remain confident in the safety of their product, stating that they plan to appeal and feel there were serious procedural and evidentiary errors made in the trial. Divan, who believes the potential risk from talc cases has been "more than sufficiently accounted for" in the current valuation of J&J shares, also thinks that multiple ongoing cases will hopefully lead to more clarity soon. He keeps an Outperform rating on Johnson & Johnson shares.
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|Date:||Mar 15, 2019|
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