In a report released on February 19, Bonnie Herzog from Goldman Sachs maintained a Hold rating on Kenvue, Inc. (KVUE – Research Report), with a price target of $22.00.
Bonnie Herzog has given his Hold rating due to a combination of factors that reflect both optimism and caution about Kenvue, Inc.’s strategic direction and current market challenges. The management’s presentation at CAGNY highlighted their commitment to strengthening the company’s brand through innovation, enhanced marketing strategies, and improved consumer engagement. They outlined plans to significantly increase innovation by 2025, which includes expanding into adjacent categories and premiumizing their portfolio.
Despite these positive developments, there are immediate challenges that temper the outlook. The company is experiencing disruptions in its APAC distribution network, especially in China, and a weak start to the cough, cold, and flu season in both the US and China. These factors contribute to a projected low single-digit organic sales decline in the first quarter. Moreover, while there is potential for growth in the latter half of the year, current market conditions and past performance necessitate a cautious approach, justifying the Hold rating.
In another report released on February 20, Barclays also maintained a Hold rating on the stock with a $21.00 price target.
KVUE’s price has also changed slightly for the past six months – from $21.640 to $22.270, which is a 2.91% increase.