Some believed the knee-jerk selling may have been an overreaction.
“In our opinion litigation overhangs are real, and we do not minimize the situation, but the stock pull back does seem over done to us,” BMO Capital Markets analyst Joanne Wuensch told Reuters.
Nevertheless, the company has been battling a number of claims, and the recent findings from Reuters could add further fuel to the fire that could continue to affect the company.
“We believe it is highly unlikely the company’s exposure to this talc issue will even come close to the $40 billion in lost market cap today,” J.P. Morgan analysts said, referring to effect of the sharp decline in JNJ share price on the company’s market capitalization.
J.P. Morgan believed that talc was not an issue that would quickly go away and expected shares to trade at a lower multiple pending further clarity.
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