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SKILLMAN, N.J. - Kenvue Inc . (NYSE: NYSE:KVUE), recognized as the world’s largest consumer health company by revenue and currently valued at $44.76 billion, has announced the immediate appointment of three new independent directors to its Board of Directors. According to InvestingPro data, the company’s stock has delivered an impressive 28% return over the past year, though it currently trades slightly above its Fair Value. The appointments come as part of a cooperation agreement with activist investor Starboard Value LP.
Sarah Hofstetter, President of Profitero, Ltd., Erica Mann, former President of Bayer (OTC:BAYRY)’s Consumer Health Division, and Jeffrey Smith, CEO of Starboard Value LP, are the new members joining Kenvue’s board. Each brings a variety of expertise, including brand building, digital marketing, global consumer health industry experience, and investor perspectives. The company has demonstrated strong operational performance with impressive gross profit margins of 58.14% and annual revenue of $15.46 billion. For deeper insights into Kenvue’s financial health and growth prospects, InvestingPro subscribers have access to over 30 additional key metrics and analysis.
Larry Merlo, Chair of Kenvue’s Board, highlighted the value the new directors will add through their complementary skills and insights, which are expected to contribute to the company’s strategic focus on sustainable, profitable growth and shareholder value creation.
Jeffrey Smith expressed optimism about Kenvue’s potential and market-leading positions, citing a constructive dialogue with the company’s board and management. He emphasized the shared goal of enhancing growth, profitability, and shareholder value.
The board expansion to 14 directors is temporary, with a reduction to 13 directors planned for the 2025 Annual Meeting of Shareholders. Under the agreement, Starboard will support Kenvue’s board nominees at the meeting and has agreed to customary standstill provisions.
The cooperation agreement will be filed with the U.S. Securities and Exchange Commission, providing transparency on the terms of the arrangement.
This strategic move by Kenvue aligns with its vision of maintaining market leadership and trust in its portfolio of iconic brands such as Aveeno®, BAND-AID® Brand, Johnson’s®, Listerine®, Neutrogena®, and Tylenol®. The company’s commitment to everyday care is backed by a century-long heritage and the endorsement of healthcare professionals worldwide. Currently offering a 3.5% dividend yield and operating with moderate debt levels, Kenvue continues to attract long-term investors. Detailed analysis of the company’s market position and growth potential is available in the comprehensive Pro Research Report on InvestingPro, part of the platform’s coverage of over 1,400 US equities.
The information in this article is based on a press release statement from Kenvue Inc.
In other recent news, Kenvue Inc. has been the subject of several analyst updates and strategic developments. Piper Sandler has raised its price target for Kenvue to $27.00, maintaining an Overweight rating, following positive insights from the Consumer Analyst Group of New York conference. William Blair has reaffirmed a Market Perform rating, noting that while Kenvue’s organic sales growth was 1.7%, the company has made significant progress in cost savings and gross margin improvements. Jefferies has adjusted its price target to $26.00, down from $27.00, but continues to maintain a Buy rating, citing confidence in Kenvue’s ongoing transformation and strategic changes.
Additionally, hedge fund Starboard Value has nominated four directors to Kenvue’s board, aiming to enhance accountability and prioritize stockholder interests. Piper Sandler’s Korinne Wolmeyer has upgraded Kenvue’s rating from Neutral to Overweight, emphasizing improvements in the company’s margin trajectory and the potential positive impact of activist involvement. These developments reflect a range of perspectives on Kenvue’s financial performance and strategic direction, providing investors with various insights into the company’s potential future growth.
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