Citi analyst Filippo Falorni has maintained their neutral stance on KVUE stock, giving a Hold rating on October 24.
Elevate Your Investing Strategy:
- Take advantage of TipRanks Premium at 50% off! Unlock powerful investing tools, advanced data, and expert analyst insights to help you invest with confidence.
Filippo Falorni has given his Hold rating due to a combination of factors impacting Kenvue, Inc. One significant reason is the recent lawsuit filed by the Texas Attorney General against KVUE and JNJ over the marketing of Tylenol to pregnant women. This legal action alleges that the companies were aware of the risks of acetaminophen, Tylenol’s active ingredient, potentially increasing the risk of autism, despite KVUE’s stance that independent research supports its safety.
Another factor influencing the Hold rating is the recent decline in Tylenol sales, as indicated by Nielsen scanner data, which showed a significant drop over the past month. This decline may be attributed to the negative publicity surrounding the lawsuit, potentially causing a broader consumer shift away from Tylenol. Despite these challenges, the expected share price return of 12.7% suggests some potential for growth, but the uncertainties surrounding the legal situation and sales trends warrant a cautious approach.
In another report released on October 24, Deutsche Bank also maintained a Hold rating on the stock with a $18.00 price target.