Kenvue, Inc., the Consumer Defensive sector company, was revisited by a Wall Street analyst yesterday. Analyst Susan Anderson from Canaccord Genuity maintained a Buy rating on the stock and has a $26.00 price target.
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Susan Anderson has given her Buy rating due to a combination of factors surrounding Kenvue, Inc.’s current situation. Despite the recent negative headlines about Tylenol potentially being linked to autism, Anderson believes the legal risks are minimal. The previous mass tort litigation was dismissed due to a lack of reputable evidence, and recent studies continue to show no causation between acetaminophen use during pregnancy and autism.
Furthermore, Anderson points out that the public sentiment, although mixed, does not overwhelmingly support the claims against Tylenol. The potential consumer base affected by these claims is relatively small, and the brand has a history of overcoming public relations challenges, as seen in the 1982 Tylenol crisis. Overall, Anderson views the recent stock sell-off as an overreaction, reinforcing her confidence in the company’s stability and future performance.