Others may be interested in Kenvue if visibility improves, says Jefferies

After Kimberly-Clark (KMB) announced an agreement to acquire Kenvue (KVUE) in a cash and stock transaction, Jefferies called the deal for $3.50 per share in cash and 0.14625 KMB shares “an attractive price for a solid portfolio of well-known brands.” The firm, which notes that its prior M&A scenario analysis and Kenvue standalone target price of $25 per share suggests a fair value that is 17%-20% higher, or about a $56B enterprise value, argues that the outcome of key cases “may decide if the deal closes and/or if another suitor comes to the table.” The firm, which believes others may be interested in Kenvue if visibility improves, has a Buy rating and $23 price target on the shares.