Kenvue, Inc.: Hold Rating Amid Mixed Signals and Market Challenges

Goldman Sachs analyst Bonnie Herzog has maintained their neutral stance on KVUE stock, giving a Hold rating today.

Bonnie Herzog has given his Hold rating due to a combination of factors influencing Kenvue, Inc.’s current market position. Despite the company reporting better-than-expected first-quarter results, including higher organic sales and improved margins, there are ongoing challenges that temper the outlook. The Skin Health and Beauty segment experienced a decline, primarily due to issues like de-stocking in Asia and a delayed sun season in the US, which are expected to continue affecting results in the near term.
Additionally, while there was some positive momentum in consumption trends in the US, particularly in Self-Care and Essential Health segments, these improvements were not enough to offset the broader concerns. The upcoming transition in the CFO position adds another layer of uncertainty, despite the incoming CFO’s extensive experience. Given these mixed signals, the Hold rating reflects a cautious approach, acknowledging both the potential for recovery and the existing headwinds that could impact future performance.

In another report released today, Barclays also maintained a Hold rating on the stock with a $23.00 price target.

KVUE’s price has also changed slightly for the past six months – from $23.680 to $24.060, which is a 1.60% increase.