TLDR
- Kenvue (KVUE) stock hit a 52-week low of $17.14, down 24.98% over the past year
- Stock dropped 5.78% following concerns about potential link between Tylenol’s acetaminophen and autism
- Department of Health and Human Services expected to release report examining acetaminophen-autism connection
- Multiple analysts maintain ratings despite concerns, with price targets ranging from $22-26
- Company CEO seeking to have Kenvue excluded from the upcoming government report
Kenvue stock dropped to a 52-week low of $17.14 on Sunday, marking a steep decline for the consumer health company. The stock fell 5.78% as investor concerns mounted over potential regulatory issues.
The sell-off comes as the Department of Health and Human Services prepares to release a report examining possible links between acetaminophen use during pregnancy and autism. Acetaminophen is the active ingredient in Tylenol, one of Kenvue’s flagship products.
Reports suggest government officials may highlight a connection between the pain reliever and autism spectrum disorders. This has created uncertainty among investors about potential legal and regulatory challenges ahead.
Kenvue’s CEO has reportedly intervened in the situation. The executive is seeking to have the company excluded from the upcoming government report entirely.
The stock’s decline reflects broader investor anxiety about the report’s potential findings. Wall Street Journal coverage of the anticipated HHS findings triggered the initial stock movement.
Market Response and Analyst Views
Despite the concerns, several analysts maintain their ratings on Kenvue stock. Goldman Sachs holds a Neutral rating with a $22.00 price target for the shares.
JPMorgan keeps its Overweight rating and $24.00 price target intact. The investment bank appears confident in the company’s long-term prospects despite current headwinds.
Canaccord Genuity maintains a Buy rating with a $26.00 price target. The firm sees minimal legal risk to Kenvue from the potential report.
Evercore ISI adjusted its price target to $23.00 from $25.00. The firm maintains an “In Line” rating while acknowledging the current uncertainties.
Company Fundamentals Remain Strong
Kenvue maintains a market capitalization of $35.2 billion despite the recent decline. The company generates annual revenue of $15.1 billion across its consumer health portfolio.
The company’s gross profit margin stands at 58.15%, showing strong operational efficiency. Kenvue also offers shareholders a dividend yield of 4.53%.
Over the past year, the stock has declined 24.98% from previous highs. The current trading level represents a year-to-date decline of 11.65%.
Average trading volume for Kenvue reaches 21.6 million shares daily. This suggests active investor interest despite the recent challenges.
The HHS has clarified that claims about the report’s contents remain speculative until official release. No final conclusions have been made public regarding acetaminophen safety concerns.
The company continues operating its consumer health business as normal. Tylenol remains a key revenue driver for Kenvue’s overall financial performance.
