Justin Sullivan/Getty Images
A container of Johnson's baby powder.
- Johnson & Johnson shares fell Monday, extending the stock's plunge on the back of a Reuters investigation into the company's baby powder.
- The healthcare company was aware for decades that its baby powder contained traces of asbestos, according to Reuters, citing internal documents. Johnson & Johnson has denied the report.
- The majority of Wall Street analysts viewed the stock's initial decline as an overreaction, but acknowledged headwinds could arise from investors' concerns about the product.
Johnson & Johnson fell 4% Monday as the fallout from a report about the company's baby powder continued. Many Wall Street analysts said the stock's initial reaction was overdone, but pointed out renewed concerns over the product's safety would prove challenging.
The healthcare company's stock plunged 10% Friday after Reuters said internal documents revealed Johnson & Johnson knew for decades that its baby powder sometimes contained traces of asbestos. The company denied this claim in a statement.
Analysts noted this was not the first revelation of safety concerns around the product. A St. Louis jury earlier this year awarded $4.69 billion to 22 women who said its talcum baby powder gave them ovarian cancer.
Here is a selection of commentary from Wall Street analysts on the stock's reaction to the report, and what could come next: