Jan. 30 at 6:39 PM
Jefferies downgraded Kenvue to Hold after shareholders approved the proposed transaction with Kimberly-Clark, removing a major closing hurdle and leaving limited upside with shares trading near the deal’s implied value of about
$18. Roughly 96% of Kimberly-Clark shareholders and 99% of Kenvue shareholders voted in favor, and Jefferies sees low risk of the deal failing, with closing expected in the fourth quarter.
The firm removed Kenvue from its Franchise Pick list, citing litigation uncertainty and slowing business trends, though it noted Kimberly-Clark views the deal as a long-term portfolio shift toward faster-growing consumer categories. Management projects 2025 revenue of about
$32 billion and adjusted EBITDA of roughly
$7 billion, with
$1.9 billion in cost synergies over three years.
Jefferies cut its price target to
$18, valuing the stock at 16 times its 2026 EPS estimate, and expects mid-single-digit EPS dilution in the first year, followed by growth in year two.
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