The shares of consumer health firm Kenvue (KVUE) rose during afternoon trading after its interim chief executive, Kirk Perry, met with Robert F. Kennedy Jr., the U.S. Secretary of Health. Perry had argued for the exemption of the company’s popular pain relief drug Tylenol from the department’s upcoming report on the potential causes of autism, according to the Wall Street Journal.
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Kenvue’s stock traded more than 2% higher to hit over $19 around 1:08 p.m. EDT. However, about a week earlier, the stock plummeted to a 52-week low after reports emerged that the health department was working towards releasing a report that could point to the use of acetaminophen among pregnant women as a potential cause of autism.
Tylenol contains acetaminophen, which is the active ingredient in the drug that relieves pain and reduces fever. Over the years, worries about a potential link between Tylenol and autism have grown, fueled by some studies suggesting a connection.
However, Kenvue said its engagement with the health department was to reiterate the safety of its products. The company also said it argued that available science affirms its position that acetaminophen does not cause autism.
Kenvue Faces Pressures
Kenvue, which spun off from pharmaceutical giant Johnson & Johnson (JNJ) in 2023, is the brain behind the skincare products brand Neutrogena and antiseptic mouthwash, Listerine. However, the consumer health company is toiling to keep its head above water.
In its second-quarter results released in mid-July, Kenvue’s organic sales fell 4.2% year-over-year, even as softer consumer spending rattled its Self Care Division. Adding to this, Kenvue has been in the spotlight for its leadership troubles, with CEO Thibaut Mongon stepping down recently. Mongon joined CFO Paul Ruh, who also exited the company earlier in May.
What Is the Price Target for Kenvue Stock?
Turning to Wall Street, Kenvue’s shares have a Moderate Buy consensus rating based on four Buy and nine Hold recommendations by 12 Wall Street analysts. The average KVUE price target of $22.68 suggests an 18% growth potential from its current level.
See more KVUE analyst ratings here.