Kenvue price target raised by $2 at Citi, here’s why

Citi raised the firm’s price target on Kenvue to $23 from $21 and keeps a Neutral rating on the shares. After two years of above-average organic sales growth across the beverages and household and personal care group on outsized pricing with limited elasticity impacts, and recovery in gross margins in 2023 on moderating commodities, Citi sees a return to historical growth levels in 2024, with a few exceptions, the analyst tells investors in a research note. 2024, the firm believes the key theme will be mean reversion, with names able to retain above-average and above-peer trends likely to outperform, together with names showing positive inflections post temporary impacts. Citi’s top pick in the space going into 2024 is Clorox (CLX).