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Investing.com - Evercore ISI has reiterated an "In Line" rating and $25.00 price target on Kenvue Inc (NYSE:KVUE) despite recent volatility related to concerns about one of its key products. According to InvestingPro data, the stock is currently trading at $18.62, with analyst targets ranging from $19 to $26, suggesting potential upside. The company maintains impressive gross profit margins of 58.15%.
Kenvue shares fell approximately 7% following a Wall Street Journal article reporting an upcoming Department of Health and Human Services study, led by Robert F. Kennedy Jr., examining potential links between prenatal acetaminophen use and autism risk. Acetaminophen is the active ingredient in Tylenol, one of Kenvue’s flagship products. The stock has taken a significant hit, down 10.09% in the past week, with the RSI indicating oversold conditions. Get deeper insights and 8 additional exclusive ProTips with InvestingPro’s comprehensive analysis.
A subsequent Bloomberg report attributed to HHS characterized any connection between acetaminophen and autism as "merely speculation," potentially tempering some market concerns about the product’s future.
Tylenol represents Kenvue’s second-largest brand, accounting for approximately 15% of U.S. sales and likely constituting the company’s largest profit pool. The brand commands a 25% premium over private label alternatives, exceeding the premium in other OTC segments such as allergy medication.
Acetaminophen is widely used beyond Kenvue products and can be found in Haleon’s Excedrin, marketed as Panadol in Europe, and in various private label versions manufactured by Perrigo.
In other recent news, Kenvue Inc . has been at the center of attention due to various developments. RBC Capital has lowered its price target for Kenvue to $22.00, maintaining a Sector Perform rating, citing a "soft" quarter influenced by slower category growth and weak seasonal performance. This adjustment aligns with the company’s earlier forecasts. Meanwhile, Jefferies has also reduced its price target to $25.00, maintaining a Buy rating, pointing to a challenging outlook for 2025 with potential for softer revenue growth and margin pressures. Additionally, BofA Securities has reiterated its Buy rating with a $25.00 price target, despite a significant stock decline over concerns about Tylenol’s safety during pregnancy. Health Secretary Robert F. Kennedy Jr. is expected to release a report suggesting a potential link between Tylenol use during pregnancy and autism spectrum disorder, which has heightened attention on Kenvue. This ongoing litigation and regulatory scrutiny have led RBC to maintain its Sector Perform rating. These recent developments have kept Kenvue in the spotlight as investors closely monitor the situation.
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