Analyst Filippo Falorni of Citi maintained a Hold rating on Kenvue, Inc., retaining the price target of $17.00.
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Filippo Falorni has given his Hold rating due to a combination of factors surrounding Kenvue, Inc. One of the primary concerns is the ongoing legal challenges related to talc-based baby powder, which have significant financial implications. The company faces a major lawsuit in the UK involving allegations of asbestos contamination, which could potentially result in substantial damages.
While Kenvue has denied these allegations and ceased selling talc-based baby powder in the UK, the legal precedent set by similar cases in the US, where Johnson & Johnson faced billions in damages, adds to the uncertainty. Although the financial impact of the UK lawsuit is not yet clear, the cautious stance reflects the potential risks associated with these legal proceedings and their possible effect on Kenvue’s financial stability.
According to TipRanks, Falorni is an analyst with an average return of -1.4% and a 55.32% success rate. Falorni covers the Consumer Defensive sector, focusing on stocks such as Constellation Brands, PepsiCo, and Celsius Holdings.
In another report released on October 8, UBS also maintained a Hold rating on the stock with a $17.00 price target.