Leerink sees no change to litigation risk, recommends buying J&J on weakness
Leerink analyst Danielle Antalffy says news that the Missouri judge denied a post-trial motion to set aside the verdict awarding 22 plaintiffs $4.69B in damages as it relates to Johnson & Johnson's baby powder is "not surprising" and does not change her view that the outstanding litigation risk is manageable. Further, the analyst notes that Johnson & Johnson has not lost the appeal, rather the trial court judge denied a post-trial motion to set aside the verdict, which is a formality that must be done before the company can file a formal appeal. Overall, Antalffy thinks Johnson & Johnson's business fundamentals will manage through this negative press and would be a buyer on weakness. The analyst has an Outperform rating on the shares.