Citi opens ‘positive catalyst watch’ on Kenvue into split-off close

Citi opened a “90 day positive catalyst watch” on shares of Kenvue (KVUE) while keeping a Neutral rating on the name. The analyst expects the shares to outperform following the close of the Johnson & Johnson (JNJ) split-off on August 18. Kenvue shares have been under pressure from event-driven funds during the exchange tender period and could see additional volatility during the averaging period, the analyst tells investors in a research note. However, Citi anticipates the stock will outperform in the following weeks, as shares return to trading based on fundamentals. It believes the stock can re-rate to $26 per share.