Analyst Peter Grom of UBS maintained a Hold rating on Kenvue, Inc., reducing the price target to $23.00.
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Peter Grom has given his Hold rating due to a combination of factors surrounding Kenvue, Inc. One significant concern is the potential link between Tylenol and autism, as reported by the WSJ, which has led to a notable decline in the company’s stock price. This situation is reminiscent of past issues faced by Kenvue, where investor concerns were primarily focused on potential financial liabilities rather than fundamental business impacts.
Additionally, the uncertainty surrounding the potential financial implications and the impact on brand equity contributes to the cautious stance. Despite Tylenol’s significant share in Kenvue’s sales, the overall financial impact might be limited, but the uncertainty remains high. Furthermore, the potential overhang from this news could hinder strategic actions aimed at unlocking value, particularly in the Self Care segment, which adds to the rationale for a Hold rating.
In another report released yesterday, Evercore ISI also reiterated a Hold rating on the stock with a $25.00 price target.