Goldman Sachs maintains Kenvue stock rating at Neutral amid CEO departure

Published 14/07/2025, 15:00
Goldman Sachs maintains Kenvue stock rating at Neutral amid CEO departure

Investing.com - Kenvue Inc (NYSE:KVUE), the $41 billion market cap consumer health company with impressive gross profit margins of 58%, announced the immediate departure of CEO Thibaut Mongon, with board member Kirk Perry stepping in as Interim CEO, according to a company statement Monday. InvestingPro analysis indicates the company maintains a FAIR financial health score.

The consumer health company simultaneously released preliminary second-quarter results showing an organic sales decline of 4.2%, significantly below consensus expectations of a 0.5% decrease. Adjusted earnings per share are expected to range between $0.28-$0.29, roughly in line with analyst forecasts. The company generated $15.3 billion in revenue over the last twelve months, despite recent headwinds.

Goldman Sachs maintained its Neutral rating and $22.00 price target on Kenvue stock following the announcement. The investment bank noted that Kenvue faces "mixed trends across its businesses" and had anticipated a downward revision to the company’s fiscal year 2025 guidance.

Kenvue confirmed it plans to revise its full-year 2025 guidance when it releases complete second-quarter results on August 7. The company’s board had previously initiated a strategic review, including potential brand portfolio optimization, aimed at improving execution and accelerating profitable growth.

Goldman Sachs analysts believe the CEO transition "will be viewed favorably" by investors, while noting that execution concerns, mixed business trends, and broader macroeconomic uncertainty regarding consumer spending continue to limit visibility into Kenvue’s growth recovery.

In other recent news, Kenvue Inc. has announced a leadership change, with Kirk Perry stepping in as interim CEO following the departure of Thibaut Mongon. This transition coincides with the company’s strategic review, which aims to explore various alternatives, including optimizing its brand portfolio. Preliminary second-quarter 2025 results showed a 4.0% decline in net sales, falling short of consensus estimates. Adjusted earnings per share are projected to be between $0.28 and $0.29, aligning with analyst predictions. Kenvue plans to release its full financial results on August 7, alongside a revised full-year 2025 outlook.

Additionally, reports suggest that Kenvue is considering divesting several smaller brands within its skin health and beauty portfolio, potentially streamlining operations to focus on core products. Goldman Sachs maintained a Neutral rating on the company, citing mixed trends across business segments and challenges such as macroeconomic uncertainty and inventory de-stocking risks. The investment firm noted that Kenvue’s growth heavily relies on improvements in the second half of the fiscal year. As Kenvue navigates these developments, the board has engaged Centerview Partners and McKinsey & Company for strategic guidance.

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