Kenvue on a 90-Day Positive Catalyst Watch at Citi
Citigroup analysts initiated a 90-day positive catalyst watch on Kenvue (NYSE:KVUE), suggesting the stock might outperform in the near term.
The analysts' action comes in anticipation of a forthcoming judge's decision on the Tylenol case's Daubert hearings, expected by early 2024. Citi analysts, having attended the recent Daubert hearing, now believe there's an increased likelihood of the case being resolved favorably. While the outcome remains uncertain, they see greater upside potential, envisioning a share price range of $23-24, as opposed to a downside risk in the $18-19 range.
Despite this short-term optimism, Citigroup maintains a Neutral rating on KVUE shares. The analysts cite several challenging fundamentals affecting Kenvue, including a slowdown in Self Care, weaker performance in China, and a slower-than-expected recovery in the Skin Health & Beauty sector.
| Symbol | Price | %chg |
|---|---|---|
| UNVR.JK | 1780 | 0 |
| 090435.KS | 39350 | 0 |
| 090430.KS | 125500 | 0 |
| HINDUNILVR.NS | 2335 | 0 |
Kenvue Beats Q1 Estimates, Adjusts Full-Year Outlook for Tariffs and Currency Headwinds
Kenvue (NYSE:KVUE) shares rose more than 5% intra-day today after the company delivered stronger-than-expected second-quarter results, but tempered its full-year outlook to reflect the impact of tariffs and currency pressures.
The consumer health company reported adjusted earnings per share of $0.24, edging past the $0.23 consensus estimate. Revenue totaled $3.74 billion, also ahead of the $3.68 billion forecast.
For fiscal 2025, the company now expects total net sales to grow 1% to 3% year-over-year. Organic sales growth is forecast between 2% and 4%, partially offset by a projected 1% drag from foreign exchange. Kenvue also warned that its adjusted operating income margin will decline from the prior year due to anticipated tariff costs.
Kenvue Inc: A Stock to Watch with Strong Growth Potential
- Kenvue Inc (KVUE) has shown a notable performance with a 6.18% gain over the past month, despite a recent dip of about 4.27%.
- The company's Piotroski Score is 8, indicating strong financial health and operational efficiency.
- With a target price set at $25.25, KVUE presents a promising investment opportunity with significant growth potential.
KVUE, listed on the stock exchange, has become a stock to watch due to its recent performance and growth potential. The company has shown a notable performance over the past month, making it an attractive option for investors. Despite a recent dip, KVUE's fundamentals remain strong, offering a promising investment opportunity.
Over the past 30 days, KVUE has achieved a gain of approximately 6.18%, indicating strong upward momentum. However, in the last 10 days, the stock experienced a decline of about 4.27%. This recent dip could present a buying opportunity for investors looking to capitalize on potential rebounds.
KVUE's growth potential is significant, with a stock price growth potential of 10.87%. This suggests that the stock has room to appreciate further, making it an attractive option for growth-oriented investors. The company's strong fundamentals support this potential for growth.
The Piotroski Score for KVUE is 8, indicating a financially healthy company. The Piotroski Score measures a company's financial strength, and a score of 8 reflects strong fundamentals. This score highlights KVUE's robust financial position and operational efficiency.
The target price for KVUE is set at $25.25, suggesting a potential upside from the current price. This aligns with the stock's growth potential and strong fundamentals, making it a promising investment opportunity. Investors should consider their risk tolerance and conduct their own research before making investment decisions.
Kenvue Reports Roughly In Line Q3 Results, Shares Fall 3%
Kenvue (NYSE:KVUE) announced its third-quarter results that met analyst estimates, but shares fell more than 3% intra-day today.
During the third quarter, the adjusted earnings per share stood at 31 cents, which is less than the expected 32 cents. The revenue for the quarter, totaling $3.92 billion, met analyst forecasts.
Thibaut Mongon, the company's CEO and Director, emphasized Kenvue's consistent focus on sustainable and profitable growth. He noted the strong operational outcomes and cash generation, pointing out their leading position in the consumer health sector. Mongon believes these results demonstrate the resilient and enduring foundation they are creating for Kenvue's long-term advantage.
For the upcoming full year, the company's projected adjusted earnings per share range from $1.26 to $1.28, which aligns with Street expectations. The expected organic revenue growth is between 5.5% and 6.0%, slightly below the 5.9% growth anticipated by analysts at the midpoint.
