J&J spinoff

Bulls

• With autonomy from its former parent, Kenvue can allocate resources to best fit its needs and grow the business.
• Macro drivers like an aging population and premiumization of health care will act as tailwinds for all of Kenvue ’ s brands.
• Kenvue ’ s continued focus on digital advertising and marketing will keep the company well-positioned to fend off any new competitors in e-commerce.

Bear

• As rising input costs put pressure on Kenvue to hike prices, consumers could start to seek cheaper options or private label offerings, hurting Kenvue ’ s volumes.
• Personalization of health paves way for smaller niche players to carve out their shares of the market with bespoke offerings. Kenvue will have a tough time fighting for these areas given the difficulty of catering to these consumers with their megabrands.
• Talc litigation has caused considerable damage to Johnson ’ s reputation and it could be difficult for Kenvue to win over lost customers despite replacing talc with cornstarch.