William Blair analyst Jon Andersen has maintained their neutral stance on KVUE stock, giving a Hold rating today.
Jon Andersen has given his Hold rating due to a combination of factors that reflect both positive developments and potential risks for Kenvue, Inc. The company’s first-quarter performance was stable, aligning with or surpassing expectations, and it maintained its full-year organic sales guidance. Key positive aspects include consistent organic sales, strong performance in self-care and essential health segments, and ongoing cost-saving initiatives aimed at achieving significant savings by 2026.
However, Andersen also noted some cautionary elements that contribute to the Hold rating. These include potential risks to the full-year outlook, such as a recent slowdown in category consumption, tighter order management by retailers, and weaker starts to the allergy and sun seasons in the U.S. Additionally, while the prospect of positive organic growth in the second half of the year is promising, the impact of tariffs remains a concern, potentially affecting operating margins and earnings per share.
Andersen covers the Consumer Defensive sector, focusing on stocks such as Primo Brands, SunOpta, and TreeHouse Foods. According to TipRanks, Andersen has an average return of 6.2% and a 63.64% success rate on recommended stocks.
In another report released today, UBS also maintained a Hold rating on the stock with a $25.00 price target.