Morgan Stanley analyst Terence Flynn maintained a Hold rating on Johnson & Johnson (JNJ – Research Report) today and set a price target of $163.00.
Terence Flynn has given his Hold rating due to a combination of factors related to Johnson & Johnson’s ongoing legal challenges and financial stability. The recent dismissal of the company’s attempt to resolve talc litigation through bankruptcy proceedings has raised concerns about potential liabilities. Despite the company’s strong balance sheet, the uncertainty surrounding the size of any potential financial impact from these legal issues remains a significant consideration.
Moreover, the court’s decision highlighted irregularities in the bankruptcy process, which could affect investor confidence. While Johnson & Johnson has managed to resolve a substantial portion of related lawsuits, the unresolved cases and the possibility of further legal proceedings contribute to the cautious outlook. These factors, combined with the company’s market performance and broader economic conditions, underpin Flynn’s decision to maintain a Hold rating on the stock.
In another report released yesterday, Wells Fargo also maintained a Hold rating on the stock with a $152.00 price target.