Citi says headlines could push consumers to alternatives to Kenvue’s Tylenol

After Texas Attorney General Ken Paxton announced he has sued Johnson & Johnson (JNJ) and Kenvue (KVUE) for marketing Tylenol to pregnant mothers, Citi analyst Filippo Falorni notes that the latter issued a response reiterating its position that acetaminophen is safe for pregnant women with no link between acetaminophen and autism, as corroborated by independent medical professionals. The firm, which notes that sales of Tylenol have declined over the last month in Nielsen scanner data, sees risk that negative headlines could push a broader set of consumers, beyond just pregnant women, to shift to alternatives and the firm keeps a Neutral rating and $17 price target on Kenvue shares.