Javier Escalante, an analyst from Evercore ISI, has initiated a new Hold rating on Kenvue, Inc. (KVUE).
Javier Escalante’s rating is based on a combination of factors that influence Kenvue, Inc.’s current market position and future prospects. The company has experienced flat sales growth over the past decade, despite efforts to revitalize its Skin Health & Beauty segment through increased marketing and supply-chain savings. However, sales in this segment have continued to decline, raising concerns about the effectiveness of these strategies.
Additionally, while Kenvue benefits from a strong portfolio of over-the-counter medications and essential products, it faces challenges due to its fragmented product categories and underinvestment in marketing and R&D compared to competitors. The recent involvement of activist investor Starboard on the board may help mitigate margin risks, but uncertainties remain about the company’s ability to turn around its performance. Given these factors, Escalante has rated Kenvue with a Hold, reflecting a balanced view of potential risks and opportunities.
According to TipRanks, Escalante is a 2-star analyst with an average return of 0.3% and a 75.00% success rate. Escalante covers the Consumer Defensive sector, focusing on stocks such as Kimberly Clark, Church & Dwight, and Clorox.