In a report released yesterday, Susan Anderson from Canaccord Genuity maintained a Buy rating on Kenvue, Inc., with a price target of $29.00.
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Susan Anderson’s rating is based on a combination of strategic and financial factors surrounding Kenvue, Inc. The recent leadership changes, including the appointment of Kirk Perry as interim CEO, indicate a potential shift in the company’s direction towards optimizing its portfolio, which could involve selling some or all of its brands. This move is seen as a strategic opportunity to unlock value, with potential buyers including major companies like Procter & Gamble and Unilever.
Furthermore, despite mixed preliminary second-quarter results, with sales falling short of expectations, the adjusted EPS aligns with market predictions. The strategic review and potential divestitures could lead to a more focused and profitable company, making it an attractive investment opportunity. Anderson believes these factors collectively enhance Kenvue’s prospects, justifying the Buy rating.
In another report released yesterday, Bank of America Securities also reiterated a Buy rating on the stock with a $25.00 price target.
KVUE’s price has also changed slightly for the past six months – from $21.030 to $21.820, which is a 3.76% increase.