Kenvue initiated with a Buy at Jefferies

Jefferies initiated coverage of Kenvue with a Buy rating and $27 price target. The company is in the early stages of a transformation, and its business that was run for cash is now being primed for growth as well-know brands in good categories – skin, beauty, oral care – are getting the reinvestment dollars they need, the analyst tells investors in a research note. Jefferies further notes that the “reinvigorated” Kenvue business should deliver mid-single-digit organic growth and double-digit EPS growth in FY26 while generating capacity for capital returns, adding that as this evolution unfolds, the stock should re-rate from 17-times to 20-times expected earnings – in-line with the company’s peers.