In a report released yesterday, Anna Lizzul from Bank of America Securities reiterated a Buy rating on Kenvue, Inc. (KVUE – Research Report), with a price target of $25.00.
Anna Lizzul has given her Buy rating due to a combination of factors including strategic board appointments and potential for multiple expansion. The recent addition of three new board members, including two independent directors and a representative from Starboard Value, is seen as a positive step towards enhancing governance and avoiding a proxy battle, which could lead to more stable management and strategic alignment.
Furthermore, Anna anticipates medium-term multiple expansion driven by improvements in volume for the skin health & beauty and self-care segments, alongside better brand support and a stronger innovation pipeline. Despite current challenges, the valuation remains attractive with a price objective set at $25, reflecting a premium to its current valuation but still a discount compared to industry peers. The company’s focus on capital allocation, including brand investment, shareholder returns, and potential acquisitions, supports the Buy rating as it aims to maintain and grow market share.
In another report released yesterday, Canaccord Genuity also maintained a Buy rating on the stock with a $29.00 price target.
KVUE’s price has also changed slightly for the past six months – from $22.510 to $23.040, which is a 2.35% increase.
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