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Investing.com - Barclays has reiterated its Equalweight rating and $20.00 price target on Kenvue Inc (NYSE:KVUE) despite recent concerns about Tylenol. According to InvestingPro data, the company maintains impressive gross profit margins of 58% and operates with a moderate level of debt, suggesting fundamental stability despite recent market concerns.
The Trump administration on Monday held a briefing outlining its views on potential links between Tylenol and autism, a position that contradicts mainstream medical establishment opinions. The administration urged pregnant women to avoid taking Tylenol, with the FDA sending notices to physicians and beginning the process to change the product’s safety label.
Kenvue shares have fallen approximately 17% since September 4, compared to a 3% decline in the Consumer Staples Select Sector SPDR Fund (XLP) during the same period. Barclays suggests this share price reaction may be excessive, even considering worst-case scenarios. InvestingPro analysis indicates the stock is currently trading near its 52-week low, with technical indicators suggesting oversold conditions. InvestingPro subscribers have access to 10+ additional exclusive insights about KVUE’s current market position.
According to Barclays’ analysis, acetaminophen products represent approximately 17% of Kenvue’s U.S. sales and about 7.5% of the company’s total sales globally. Tylenol and Children’s Tylenol account for nearly all of Kenvue’s acetaminophen-based product sales.
While Barclays maintains its rating, the firm acknowledges investor concerns about broader brand equity issues and potential legal risks following the administration’s announcement. Despite these challenges, InvestingPro data shows Kenvue trading at a low P/E ratio relative to near-term earnings growth, with analysts projecting continued profitability this year. A comprehensive analysis of KVUE’s valuation and growth prospects is available in the exclusive InvestingPro Research Report.
In other recent news, Kenvue Inc . has been the focus of several analyst reports amid concerns surrounding its Tylenol product line. Evercore ISI has reduced its price target for Kenvue to $18, citing the FDA’s decision to initiate a process to change the safety label on acetaminophen, the active ingredient in Tylenol. Meanwhile, Goldman Sachs maintained its Neutral rating with a $22 price target, noting potential headline risks due to a forthcoming report by HHS Secretary RFK Jr. regarding the use of Tylenol during pregnancy. JPMorgan also reiterated its Overweight rating and set a $24 price target, highlighting that claims about the HHS report’s contents remain speculative. Canaccord Genuity continues to support Kenvue with a Buy rating and a $26 price target, asserting minimal legal risk despite ongoing concerns. Evercore ISI previously lowered its price target to $23 amid reports suggesting possible links between acetaminophen and neurodevelopmental disorders during pregnancy. These developments reflect ongoing scrutiny and varying analyst perspectives on Kenvue’s future amid regulatory and legal considerations.
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