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Investing.com - BofA Securities has reiterated its Buy rating and $25.00 price target on Kenvue Inc (NYSE:KVUE) following a significant stock decline related to Tylenol safety concerns. According to InvestingPro data, the stock has fallen over 10% in the past week, with current trading at $18.62 showing significant distance from analyst targets ranging from $19 to $26.
On September 5, Kenvue stock fell 9.3% compared to the Consumer Staples Select Sector SPDR Fund’s 0.3% gain after reports that Health Secretary Robert F. Kennedy Jr. plans to release a report linking Tylenol use during pregnancy to autism spectrum disorder (ASD) and attention-deficit/hyperactivity disorder (ADHD).
The U.S. Food and Drug Administration previously maintained its position that it could not establish causality between acetaminophen use during pregnancy and ASD/ADHD risk when similar concerns emerged in 2023. BofA Securities estimates Tylenol represents approximately 9% of Kenvue’s sales, with a majority coming from the U.S. market.
Kenvue recently reset expectations during its August earnings report with new CEO and CFO leadership. BofA views the company’s lowered 2025 guidance as achievable, expecting improving though still negative organic sales through 2025.
BofA values Kenvue with a 13x calendar year 2026 estimated EV/EBITDA multiple, representing a premium to its current 11x valuation but a discount to the household and personal care peer average of 15x, and sees the widening discount as "a particularly attractive entry point."
In other recent news, Kenvue Inc . has been the subject of multiple analyst reports and regulatory developments. The company reported a 4.0% decline in sales for the second quarter of 2025, with organic sales down by 4.2%, as noted by Canaccord Genuity. The firm attributed these results to weaker consumption, trade inventory fluctuations, and increased promotional activity. Following this performance, Canaccord Genuity lowered its price target for Kenvue to $26.00 while maintaining a Buy rating. Jefferies also adjusted its price target to $25.00, citing a challenging outlook for 2025 with expectations of softer top-line performance and margin compression.
Additionally, RBC Capital lowered its price target on Kenvue to $22.00 due to a "soft" quarter impacted by slower category growth and weak seasonal performance. Despite these challenges, RBC maintained its Sector Perform rating. Meanwhile, regulatory concerns have arisen as U.S. Health Secretary Robert F. Kennedy Jr. plans to announce a potential link between Tylenol use during pregnancy and autism, which could impact Kenvue’s Tylenol brand. This development has added pressure on the company amid ongoing litigation and potential regulatory scrutiny.
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