Analyst Anna Lizzul of Bank of America Securities reiterated a Buy rating on Kenvue, Inc., reducing the price target to $25.00.
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Anna Lizzul’s rating is based on several factors, including the recent CEO transition at Kenvue, Inc., which was anticipated due to activist pressure from major stakeholders. The appointment of Kirk Perry as interim CEO, with his extensive experience from Procter & Gamble and Circana, is seen as a positive step towards strategic review and potential growth. Despite the company’s preliminary Q2 results showing weaker sales and earnings, largely due to challenges in the skin health and beauty segment, the Board’s proactive approach in reviewing the company’s portfolio and execution is viewed favorably.
Furthermore, Anna Lizzul has adjusted the price objective for Kenvue shares to $25, reflecting a revised EV/EBITDA multiple that remains a premium to its current valuation. This adjustment suggests confidence in Kenvue’s ability to improve execution and maintain market share across its brands. The Buy rating is reiterated as the company is expected to reset its guidance, which could lead to a more tempered outlook for the second half of 2025, but with potential for long-term growth.