J&J talc bankruptcy case dismissal impact to be determined, says BofA

After the Third U.S. Circuit Court of Appeals denied Johnson & Johnson from using bankruptcy to resolve talc-related liabilities by announcing the dismissal of the Chapter 11 case of subsidiary LTL Management, BofA analyst Goeff Meacham said the ruling is a negative, but noted that J&J can still seek a rehearing before the Third Circuit and seek an appeal before the Supreme Court, making the timing for a final resolution and impact still to be determined. The firm, which adds that resolution "may be years away" and contends that the actual impact is "difficult to assess at this time," has a Neutral rating and $185 price target on J&J shares.