Analyst Filippo Falorni from Citi maintained a Hold rating on Kenvue, Inc. and keeping the price target at $20.00.
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Filippo Falorni’s rating is based on a combination of factors including recent governmental advisories and market reactions. The Trump administration’s announcement discouraging the use of acetaminophen, the active ingredient in Tylenol, by pregnant women due to potential autism risks has created negative headlines for Kenvue, Inc., the maker of Tylenol. Despite Kenvue’s stance, supported by independent health professionals, that there is no scientific evidence linking acetaminophen to autism, the market reacted with a 7.5% drop in KVUE’s stock price.
Falorni acknowledges the limited judicial risk following a recent case dismissal but remains cautious due to the potential impact on Tylenol consumption. The lack of new scientific evidence might lead to a positive stock reaction, but the current uncertainty and public perception warrant a Hold rating. This balanced approach reflects the need to consider both the company’s position and the broader market and regulatory environment.
In another report released on September 8, Evercore ISI also maintained a Hold rating on the stock with a $25.00 price target.