Kenvue price target raised to $27 from $24 at BofA

BofA raised the firm’s price target on Kenvue (KVUE) to $27 from $24 and keeps a Buy rating on the shares. Noting that The Wall Street Journal reported that activist investor Starboard Value has taken an undisclosed stake in Kenvue, the firm says it thinks multiple expansion would be possible with near-term improvement in volumes in skin health and beauty and self care; greater brand support through improved in-store execution and marketing; and a more robust innovation pipeline. Due to missteps in strategy and execution post-split from Johnson & Johnson (JNJ), the firm sees “a reasonable argument for management and board changes” at Kenvue, but adds that this may be “a longer process for Starboard to enact,” noting that the next annual meeting of shareholders should take place in Q2 of 2025.