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Canaccord Genuity has started coverage of Kenvue (NYSE:KVUE) with a buy rating, citing growing consumer demand for self-care products and the company’s global reach.
The investment bank noted that Kenvue’s parent, Johnson & Johnson (JNJ), now owns slightly less than 10% of Kenvue following a tender offer for J&J shareholders, thereby eliminating an overhang on the stock.
“We believe that Kenvue is well-positioned to focus on growing its core brands through its strong innovation and marketing engine,” Canaccord said in its note. It added that Kenvue’s global scale gave it an advantage over competitors in terms of pricing and bargaining power with suppliers and retailers.
Canaccord also said it believed Kenvue’s products, which have global name recognition, would “hold up well during recessionary periods” and that the stock represented a “great risk/reward opportunity.”
Kenvue’s brands include Johnson’s, Neutrogena, Tylenol, Listerine and Aveeno.
The bank set a price target for the stock of $28.
