Kenvue Inc (KVUE) PT Raised to $21 at Goldman Sachs

Goldman Sachs analyst Bonnie Herzog raised the price target on Kenvue Inc (NYSE: KVUE) to $21.00 (from $20.00) while maintaining a Neutral rating.

The analyst comments "We believe KVUE's recently completed secondary offering, which eliminated J&J's ownership in the stock, removes a key overhang and should help with liquidity moving forward. However, despite relatively robust Q1 results last week, we believe the stock could remain range-bound in the near-term until there is greater visibility on improvements in its Skin Health & Beauty segment. We believe these improvements won't be visible until KVUE fully recovers its distribution in the segment, and that likely won't occur until later this year. As such, we remain Neutral-rated on KVUE as we believe shelf distribution recovery has proven to be more challenging for the company and visibility into a near-term catalyst is limited. As such, we don’t expect the stock to re-rate higher until we get more clarity and this keeps us on the sidelines for now. Over the long term, we remain optimistic as our bottom-up HPC global growth model suggests that KVUE’s end-market exposure and portfolio of strong brands positions it amongst the top-tier HPC companies (e.g., PG and CL) and this could ultimately drive a re-rating in the stock."

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