Kenvue, Inc.: Buy Rating Amid Potential Upside and Strategic Opportunities in Self Care and SH&B Segments

Analyst Susan Anderson of Canaccord Genuity maintained a Buy rating on Kenvue, Inc. (KVUE – Research Report), retaining the price target of $29.00.

Susan Anderson has given her Buy rating due to a combination of factors that suggest potential upside for Kenvue, Inc. Despite challenges following its spin-off from Johnson & Johnson, Kenvue’s brands, particularly in the Self Care segment, have shown resilience. The company’s Self Care brands like Tylenol and Zyrtec are performing well, while the Essential Health brands are maintaining their positions. Anderson sees potential value in possibly separating or selling parts of the business, particularly the Skin Health & Beauty (SH&B) segment, which could unlock significant shareholder value.
Furthermore, Anderson’s analysis suggests that if Kenvue can improve its operations, particularly in the SH&B segment, there could be substantial upside. The SH&B business, although currently underperforming, has shown early signs of recovery and could achieve higher margins with the right strategic moves. Anderson’s valuation estimates indicate that with improved operations, the stock could see a significant increase in value, making it an attractive buy at current levels.

In another report released on May 9, J.P. Morgan also maintained a Buy rating on the stock with a $27.00 price target.

KVUE’s price has also changed slightly for the past six months – from $23.780 to $24.130, which is a 1.47% increase.