Core Thesis - Kenvue Inc. is undergoing a strategic review to optimize its brand portfolio and enhance operating performance, aiming to unlock shareholder value [2][3][4] Company Overview - Kenvue Inc. operates as a consumer health company across multiple regions including the United States, Europe, the Middle East, Africa, Asia-Pacific, and Latin America [2] - As of November 28th, Kenvue's share price was $17.35, with a market capitalization of approximately $30 billion and an enterprise value of around $38 billion [3] Financial Metrics - Kenvue's trailing and forward P/E ratios are 23.13 and 15.77 respectively, with an EV/EBITDA multiple of roughly 11× [1][3] - The company offers a dividend yield of about 4%, providing a solid income component for investors [3] Strategic Initiatives - The strategic review may lead to the sale of underperforming Skin Health & Beauty brands, acquisitions in high-growth OTC health categories, and capital reallocation to higher-margin segments [4] - Analysts estimate that these initiatives could raise Kenvue's margins and overall valuation by 15–25% [4] Investment Case - The combination of a disciplined strategic review, potential divestitures, and a focus on higher-margin segments positions Kenvue to enhance profitability and shareholder returns over time [5] - Kenvue's current valuation and dividend yield, along with strategic initiatives, create an attractive investment case for those seeking operational upside and a clear path to value creation [5]

Core Insights - The company has recently announced divestitures, specifically regarding Kepware and ThingWorx, which have raised questions about the strategic rationale behind these decisions [1] Group 1: Divestitures - The divestitures of Kepware and ThingWorx were influenced by a shift in the direction of these businesses, which has diverged from the company's core focus [1] - There was significant effort invested in these deals in the past, indicating that the decision to divest is strategic rather than impulsive [1]

Core Insights - Medtronic Plc reported second-quarter earnings and announced key board appointments following Elliott Investment Management becoming the largest shareholder [1] - The company introduced a new Growth Committee to oversee strategic M&A, R&D investments, and potential divestitures, including the planned separation of its Diabetes business [1] Financial Performance - Medtronic's first-quarter 2026 sales reached $8.58 billion, exceeding the consensus estimate of $8.38 billion, representing an 8.4% year-over-year increase with organic growth of 4.8% [2] - Adjusted earnings per share were $1.26, surpassing expectations of $1.23 [2] Sales Guidance - The company raised its sales guidance for fiscal 2026 from a range of $35.15 billion to $35.25 billion to a new range of $35.72 billion to $35.82 billion, compared to the consensus of $35.32 billion [3] Analyst Reactions - Needham's analyst Mike Matson believes Medtronic is in the early stages of a strong product cycle and expects Elliott's involvement to enhance shareholder value, but maintains a Hold rating until organic growth shows meaningful acceleration beyond 5% [4] - Matson raised fiscal 2026 and 2027 revenue estimates to $35.81 billion from $35.29 billion and to $37.69 billion from $36.96 billion, respectively [5] - Bernstein maintains an Outperform rating on Medtronic, raising the price forecast from $97 to $98, while Baird maintains a Neutral rating, increasing the price forecast from $94 to $96 [6] Stock Performance - Medtronic's stock increased by 4.07%, reaching $93.56 at the last check on Wednesday [6]