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On Monday, Piper Sandler updated its view on Kenvue Inc (NYSE:KVUE), increasing the price target to $27.00 from the previous $24.00, while reiterating an Overweight rating on the company’s shares. The adjustment follows Piper Sandler’s analysis of the recent Consumer Analyst Group of New York (CAGNY) conference. According to InvestingPro data, the stock is currently trading at $23.32, with a relatively high P/E ratio of 36.8x.
During the event, which took place last week, Piper Sandler analysts had the opportunity to engage with several companies they cover, including Church & Dwight Co., Inc. (NYSE:CHD), Colgate-Palmolive Company (NYSE:CL), Coty Inc . (NYSE:COTY), e.l.f. Beauty, Inc. (NYSE:ELF), Kenvue, and Procter & Gamble Co. (NYSE:PG). Kenvue emerged as a standout for its notably positive incremental reads, according to the analysts.
Kenvue’s management team confirmed their existing guidance, acknowledging some expected disruptions in the first half of the year. Nonetheless, they conveyed a strong sense of confidence in the second half’s prospects. The company’s recent updates on its progress in the Skin Health & Beauty segment have spurred additional optimism among observers.
The Piper Sandler team noted the sense of urgency displayed by Kenvue’s leadership to drive improvements. They believe that if the company executes its strategies effectively, it could present an attractive opportunity for investors, especially given that the stock is currently trading at what they consider to be a discounted rate. InvestingPro analysis shows the stock has gained 10.3% year-to-date, though technical indicators suggest it may be in overbought territory. Discover more insights and 8 additional ProTips about Kenvue in the comprehensive Pro Research Report.
In other recent news, Kenvue Inc has reported an earnings per share (EPS) of $0.26, aligning with projections, despite its organic sales growth of 1.7% falling short of expectations. The company has made progress in gross margin improvement and achieved over half of its targeted Vue Forward cost savings. Jefferies recently revised its price target for Kenvue to $26.00 from $27.00, maintaining a Buy rating, highlighting the company’s ongoing transformation and strategic changes. Meanwhile, Piper Sandler upgraded Kenvue’s rating from Neutral to Overweight, citing improvements in margin trajectory and an increased price target to $26.00.
Additionally, Starboard Value has nominated four directors to Kenvue’s board, aiming to enhance the company’s financial performance and market position. Jefferies continues to support Kenvue’s strategic initiatives, maintaining a Buy rating with a price target of $27.00, focusing on revitalizing the Listerine brand to attract younger customers. The company’s strategic efforts to innovate and adapt its product offerings are viewed positively by analysts. William Blair maintains a Market Perform rating for Kenvue, noting the company’s investment in innovation and market expansion. These developments reflect Kenvue’s ongoing efforts to strengthen its market presence and financial health.
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