Analyst Filippo Falorni of Citi maintained a Hold rating on Kenvue, Inc. (KVUE – Research Report), retaining the price target of $24.50.
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Filippo Falorni has given his Hold rating due to a combination of factors influencing Kenvue, Inc.’s current market position. The company is reportedly considering the sale of some of its smaller Skin Health & Beauty brands, which collectively account for a modest portion of its total sales. This decision seems to be driven by the underperformance of this segment and the involvement of activist investors, alongside the recent appointment of a new CFO.
While the potential divestiture might not surprise market observers, it could be seen as insufficient by investors who are hoping for more significant strategic moves or portfolio reshaping. The retention of major brands like Neutrogena and Aveeno suggests a focus on core assets, yet the limited scope of the divestiture may not fully address investor expectations for broader changes. Consequently, these elements contribute to a cautious outlook, justifying the Hold rating.
According to TipRanks, Falorni is an analyst with an average return of -1.7% and a 55.14% success rate. Falorni covers the Consumer Defensive sector, focusing on stocks such as Monster Beverage, Brown-Forman B, and Boston Beer.
In another report released yesterday, Goldman Sachs also maintained a Hold rating on the stock with a $22.00 price target.