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Investing.com - Canaccord Genuity lowered its price target on Kenvue Inc (NYSE:KVUE) to $26.00 from $29.00 on Thursday, while maintaining a Buy rating following the company’s second-quarter results. The consumer health company, currently trading at $21.76 with a market capitalization of $41.8 billion, appears fairly valued according to InvestingPro analysis.
The consumer health company reported a 4.0% decline in sales for the second quarter of 2025, with organic sales down 4.2%. Despite these challenges, InvestingPro data shows Kenvue maintains impressive gross profit margins of 58.2% and offers a solid 3.81% dividend yield. The company faced pressure across its business due to weaker consumption, trade inventory fluctuations, and increased promotional activity affecting value realization.
Despite these challenges, Kenvue’s brands globally outpaced sales results across all segments in terms of consumption. The company is currently undergoing leadership changes, including a new interim CEO announced in July and a new CFO who joined in May.
The new executive team and partially refreshed Board are reviewing all options to improve performance, including an evaluation of the company’s portfolio of more than 100 brands.
Canaccord Genuity cited near-term headwinds and uncertainty but remains positive on Kenvue’s strong brand portfolio, noting the stock trades at approximately 20 times the firm’s lowered fiscal year 2026 earnings estimate, while peers trade in the low-to-high-20s range.
In other recent news, Kenvue Inc. reported its second-quarter 2025 earnings, which showed an adjusted diluted earnings per share (EPS) of $0.29, falling short of the forecasted $0.35. The company also missed revenue expectations, reporting $3.84 billion against an anticipated $4.18 billion. These earnings and revenue results are significant for investors assessing the company’s financial performance. Despite the earnings and revenue misses, Kenvue’s stock showed a positive movement in pre-market trading. This development is noteworthy as it reflects investor sentiment despite the financial shortfall. Analysts from various firms may weigh these results in their future assessments of the company. Investors will be keen to see how Kenvue addresses these financial challenges in upcoming quarters.
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