Jefferies Downgrades Kenvue (KVUE) to Hold With $18 PT Over Limited Upside, Litigation Risks

Core Viewpoint - Kenvue Inc. has been downgraded by Jefferies from Buy to Hold, with a reduced price target of $18, reflecting concerns over limited upside potential and litigation risks following the approval of its merger with Kimberly-Clark [1][7]. Group 1: Merger Approval - Shareholders of both Kimberly-Clark and Kenvue have overwhelmingly approved the merger, with approximately 96% of Kimberly-Clark shares and about 99% of Kenvue's voting shares in favor [2]. - The merger is expected to create a global leader in health and wellness by combining well-known brands such as Huggies, Kleenex, Tylenol, and Neutrogena, with the transaction anticipated to close in the second half of 2026, pending regulatory approvals [3]. Group 2: Company Overview - Kenvue Inc. operates as a consumer health company across various regions, including the US, Europe, the Middle East, Africa, Asia-Pacific, and Latin America, and is structured into three segments: Self Care, Skin Health and Beauty, and Essential Health [4].