Jefferies reiterates Buy rating for Kenvue stock despite share decline

On Wednesday, Jefferies analysts reiterated their Buy rating for Kenvue Inc (NYSE: KVUE), maintaining a price target of $27.00. According to InvestingPro data, analyst targets range from $22 to $29, with the company maintaining impressive gross profit margins of 58.2%. The decision follows recent management commentary regarding April’s destocking, a cautious consumer environment, and early seasonal trends, which were perceived as negative factors.

Despite these concerns, Jefferies noted that some of these issues were already anticipated and did not prompt a change in guidance. The analysts highlighted that the business is showing signs of recovery, with investments expected to support a full turnaround. The company generated $15.3 billion in revenue over the last twelve months, and InvestingPro analysis indicates net income growth is expected this year.

Shares of Kenvue fell by 6% on Tuesday, which Jefferies analysts view as an opportunity for the company to pursue a self-help transformation. The analysts believe that the market’s reaction to the recent commentary may have been overstated.

Kenvue, a company listed on the New York Stock Exchange, continues to navigate a challenging consumer landscape, yet remains focused on its recovery strategy.

In other recent news, Kenvue Inc. (NYSE:KVUE) reported $15.5 billion in sales for the fiscal year 2024, marking its debut on the Fortune 500 list at number 281. The company also announced the issuance of $750 million in Senior Notes, with plans to use the proceeds for general corporate purposes. During its 2025 Annual Meeting of Shareholders, Kenvue’s shareholders approved the election of all 13 director nominees and ratified the appointment of PricewaterhouseCoopers LLP as the independent registered public accounting firm for 2025. In analyst updates, Canaccord Genuity maintained a Buy rating on Kenvue, setting a price target of $29.00, and noted a potential 33% upside if the company can enhance its operations, particularly within its Skin Health & Beauty segment. CEO Thibaut Mongon recently addressed seasonal demand challenges at a conference, citing a longer winter as a factor impacting allergy and sun care product sales. The company is also experiencing shipment delays due to US retailers’ de-stocking in response to the current tariff environment. These developments reflect ongoing challenges and strategic decisions facing Kenvue as it navigates its position in the consumer health sector.

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