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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.
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Disclaimer
The user julio holds no position in NYSE:KVUE. Simply Wall St has no position in any of the companies mentioned. The author of this narrative is not affiliated with, nor authorised by Simply Wall St as a sub-authorised representative. This narrative is general in nature and explores scenarios and estimates created by the author. The narrative does not reflect the opinions of Simply Wall St, and the views expressed are the opinion of the author alone, acting on their own behalf. These scenarios are not indicative of the company's future performance and are exploratory in the ideas they cover. The fair value estimates are estimations only, and does not constitute a recommendation to buy or sell any stock, and they do not take account of your objectives, or your financial situation. Note that the author's analysis may not factor in the latest price-sensitive company announcements or qualitative material.
