Kenvue (KVUE): A Fresh Valuation Perspective Following Major UK Talc Lawsuit and Share Price Reaction

Interest in Kenvue (NYSE:KVUE) spiked this week after the company was named in a high-profile UK lawsuit. More than 3,000 claimants are alleging cancer caused by talc-based products.

See our latest analysis for Kenvue.

Kenvue’s share price has been on a rollercoaster lately, with volatility peaking after legal headlines in the UK. While the 1-day share price return shot up 8.36%, the stock is still down more than 28% year-to-date, and its 1-year total shareholder return remains negative at -26.97%. Momentum has clearly faded in recent months as legal and reputational risks take center stage. At the same time, the company is moving forward with digital partnerships to support long-term transformation.

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With shares trading well below analysts’ average price targets and recent volatility stirring debate, the key question is whether Kenvue’s legal setbacks have created a genuine bargain or if the market has already accounted for future risks and growth.

Most Popular Narrative: 29.5% Undervalued

The narrative consensus sees Kenvue's fair value far ahead of its recent close, revealing a sizable gap that could reshape sentiment around the stock. Expectations hinge on more than legal noise. Investors are watching for operational shifts in a sector under the microscope.

"New leadership with strong digital and data expertise, combined with targeted investments in e-commerce and AI, positions Kenvue to capitalize on rising consumer adoption of digital health retail channels. This shift should drive higher volume growth, improved market share, and eventually support topline revenue acceleration."

Read the complete narrative.

Want to know what powers this bold upside? This narrative banks on a specific combination of future earnings, margins, and a premium multiple. These figures might surprise even seasoned investors. The full calculation could flip how you view Kenvue’s potential. Curious what’s driving the optimism? Find out inside the complete story.

Result: Fair Value of $21.70 (UNDERVALUED)

Have a read of the narrative in full and understand what's behind the forecasts.

However, there are clear risks. Operational inefficiencies and lagging e-commerce efforts could undercut growth if not addressed in the near term.

Find out about the key risks to this Kenvue narrative.

Build Your Own Kenvue Narrative

If you see things differently or want to dig into the numbers yourself, you can easily craft your own perspective in just a few minutes. Do it your way

A great starting point for your Kenvue research is our analysis highlighting 4 key rewards and 3 important warning signs that could impact your investment decision.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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