Key Takeaways:
- Johnson & Johnson's (JNJ, Financial) latest attempt to settle talc-related lawsuits through bankruptcy has been dismissed, requiring traditional legal action.
- Analysts project a potential 8.91% upside, with price targets ranging from $150.00 to $190.00.
- GF Value estimates a 19.29% upside, reflecting the stock's potential fair market value.
Johnson & Johnson's Legal Challenges
A Texas federal judge has dismissed Johnson & Johnson's (NYSE: JNJ) third attempt to utilize bankruptcy proceedings to address claims that its talc products cause cancer. This decision mandates that J&J confront thousands of lawsuits via the traditional legal route. Initially, the company had proposed a $9 billion settlement through a subsidiary's bankruptcy filing, criticized for providing insufficient time for creditors to vote. Consequently, Johnson & Johnson will now reassume $7 billion allocated for settlements and address each lawsuit individually.
Wall Street's Outlook for Johnson & Johnson
According to one-year price targets from 22 analysts, Johnson & Johnson (JNJ, Financial) is forecasted to reach an average target price of $169.61, with estimates ranging from $150.00 to $190.00. This average target suggests an 8.91% upside from the current share price of $155.74. For more comprehensive estimates, visit the Johnson & Johnson (JNJ) Forecast page.
The consensus from 24 brokerage firms positions Johnson & Johnson's (JNJ, Financial) average recommendation at 2.4, signifying an "Outperform" status. The scale, ranging from 1 (Strong Buy) to 5 (Sell), underscores a generally positive outlook from analysts.
Assessing Johnson & Johnson's GF Value
Based on GuruFocus metrics, the estimated GF Value for Johnson & Johnson (JNJ, Financial) one year from now stands at $185.78. This suggests a potential 19.29% upside from the current price of $155.735. The GF Value is a proprietary estimate reflecting the stock's fair trading value, calculated from historical trading multiples, past business growth, and future business performance forecasts. For further details, the Johnson & Johnson (JNJ) Summary page offers more insights.
