11:16 AM EDT, 04/02/2025 (MT Newswires) -- Johnson & Johnson's ( JNJ ) talc litigation risks are "likely" manageable as the drugmaker is going back to the tort system to fight what it deems "junk science," RBC Capital Markets said in a note Monday.

The company said late Monday that the US Bankruptcy Court for the Southern District of Texas denied its subsidiary Red River Talc's request to confirm its proposed prepackaged bankruptcy plan.

RBC said Johnson & Johnson's ( JNJ ) return to the tort system is "prudent" because it has had prior success there, winning 16 of 17 cases in the last 11 years. The firm also noted that the company will do the Daubert Challenge that places the burden on the plaintiff to prove the scientific validity of their opinion, which could potentially end federal cases.

RBC added that the company has a "strong" cash position and hasn't changed its 2025 guidance.

The firm maintained an outperform rating on the stock with a $181 price target.

Shares were up 1.4% in recent trading.

Price: 155.37, Change: +2.12, Percent Change: +1.38