In a report released yesterday, Susan Anderson from Canaccord Genuity maintained a Buy rating on Kenvue, Inc., with a price target of $26.00.
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Susan Anderson has given her Buy rating due to a combination of factors surrounding Kenvue, Inc.’s current legal challenges and market position. Despite the recent news regarding talc lawsuit liabilities in the UK, Anderson believes that the legal system there, which is judge-led rather than jury-led, may work in Kenvue’s favor. This system is likely to result in lower financial liabilities compared to the US, where jury awards can be significantly higher.
Furthermore, Anderson notes that Kenvue is expected to contest the lawsuit vigorously, leveraging scientific data to argue the safety of its talc-based products. Additionally, historical data from similar cases in the UK suggests that financial awards are generally lower, which could mitigate potential financial impacts on Kenvue. These factors, combined with Kenvue’s strategic handling of the situation, underpin Anderson’s confidence in the company’s ability to navigate these challenges, justifying the Buy rating.
In another report released on October 10, J.P. Morgan also maintained a Buy rating on the stock with a $21.00 price target.
KVUE’s price has also changed moderately for the past six months – from $22.730 to $14.110, which is a -37.92% drop .