Kenvue downgraded to Sector Perform from Outperform at RBC Capital

RBC Capital analyst Nik Modi downgraded Kenvue to Sector Perform from Outperform with an unchanged price target of $24. The shares are up 26% quarter-to-date and are now within striking distance of the price target, the analyst tells investors in a research note. The firm acknowledges Kenvue is getting better at expectations management but is struggles to justify any more upside in the shares. RBC believes skin health and beauty will remain under pressure, which it says is a key driver of the stock. It is skeptical the company can sustain a turnaround at the pace investors expect.