Canaccord Genuity analyst Susan Anderson has maintained their neutral stance on KVUE stock, giving a Hold rating yesterday.
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Susan Anderson’s rating is based on the ongoing legal uncertainties surrounding Kenvue, Inc. The company is currently involved in a multidistrict litigation (MDL) concerning the potential link between acetaminophen use and autism spectrum disorder (ASD). During a recent Court of Appeals hearing, judges questioned the exclusion of the plaintiffs’ expert witnesses by the District Court, suggesting the possibility of the case being remanded back for further proceedings.
Although the litigation could take years to resolve, and the worst-case liability is estimated at approximately $6 billion, Anderson believes that the potential $3 per share impact is already reflected in the stock price. Additionally, the scientific evidence does not definitively prove causation, which remains a significant hurdle for the plaintiffs. These factors contribute to the Hold rating, as the stock’s current valuation appears to account for the existing risks and uncertainties.
According to TipRanks, Anderson is a 5-star analyst with an average return of 16.5% and a 44.42% success rate. Anderson covers the Consumer Cyclical sector, focusing on stocks such as Ulta Beauty, Sally Beauty, and Peloton Interactive.
In another report released yesterday, Citi also maintained a Hold rating on the stock with a $18.00 price target.