Johnson & Johnson's (JNJ) solid financial position and robust fundamentals will likely mitigate the impact of the ongoing talc powder lawsuits against the company, RBC Capital Markets said in a note Tuesday.

RBC said that Johnson & Johnson will have the ability to spread risks linked to the talc litigation over time and may get more settlements, with the suits likely to "drag on for years" as the company "potentially litigates this case-by-case and year-by-year."

Additionally, the company has a "strong financial position with substantial cash on its balance sheet" with meaningful free cash flow generation annually, the note said.

Separately from the talc suits, RBC said the company is seeing "continued strong fundamentals" and its recent share price increase supports a "higher multiple on a modestly raised EPS estimate."

Many of Johnson & Johnson's catalysts are yet to play out aiding growth acceleration, the investment firm said.

RBC lifted Johnson & Johnson's price target to $255 from $240, while keeping the company's outperform rating.

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