BMO Capital Markets analyst Joanne Wuensch wrote that the stock's initial move appeared to be an overreaction.
"The health care industry is litigious, and we never pretend to be lawyers, but it is not surprising that an article from Reuters outlining years of potential knowledge regarding the perils of talc should agitate investors," she said. "Further, in a difficult stock market JNJ as a 'safe haven' investment may appear not-so-safe."
The analyst added: "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."
Wuensch carries an "outperform" rating on the stock, with a bullish $154 per share price target.