Kenvue, Inc. (KVUE) has disclosed a new risk, in the Taxation & Government Incentives category.
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Kenvue, Inc. faces a significant risk if the Transaction fails to qualify as a ‘reorganization’ under Section 368(a) of the Internal Revenue Code. Without a legal opinion or IRS ruling, there is uncertainty about the tax implications, potentially leading to additional U.S. federal income taxes for shareholders. The lack of assurance on the Transaction’s qualification could result in shareholders recognizing gain or loss upon exchanging their common stock. This tax exposure adds a layer of financial risk to the shareholders, impacting their investment returns.
The average KVUE stock price target is $18.91, implying 18.41% upside potential.
To learn more about Kenvue, Inc.’s risk factors, click here.