Healthcare stock Kenvue (NYSE:KVUE) may not be a household word, but the company that spun it off sure is – Johnson & Johnson (NYSE:JNJ). Now, Kenvue—who handles brands like Tylenol that are absolutely household names—is picking up some new gains. It’s up nearly 4% in Monday afternoon’s trading, largely on account of some positive proceedings in court and improved analyst commentary therein.
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Analysts came out in favor of Kenvue, with Stephen Powers of Deutsche Bank upgrading Kenvue to Buy. Powers declared Kenvue stock “oversold,” noting further that there were some “…certain fundamental uncertainties…” still in play, but also noting that said uncertainties were “…now more than adequately discounted in current valuation.” Basically, the lawsuits and such have now been priced in, and the stock should be ready for pickup according.
Furthermore, the recent court case Kenvue was targeted with, which suggested a link between childhood autism and prenatal exposure to Tylenol, got a new twist thrown in by the FDA. The FDA didn’t comment on new proposed labels for Tylenol or even offer a statement of interest. It did, however, take note of an epidemiology report from 2023 that suggested the FDA was not especially concerned about Tylenol’s link to childhood autism. That brought in analysts from all over, noting that the current weakness is a buying opportunity and the court case has little likelihood of damaging Kenvue.
A majority of analysts, in fact, are on Kenvue’s side. With five Buy ratings and three Holds, Kenvue is considered a Moderate Buy by analyst consensus. Further, with an average price target of $28, Kenvue stock comes with 27.21% upside potential.
