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

Kenvue Inc. (NYSE:KVUE) is one of the best large cap stocks to buy under $50. On January 30, Jefferies downgraded Kenvue to Hold from Buy and lowered the price target to $18 from $23. Following shareholder approval for the Kimberly-Clark merger, the firm noted that Kimberly-Clark Corp. (NASDAQ:KMB) seems comfortable with Kenvue’s litigation risks and slowing trends. Jefferies expects limited upside as shares trade near the $18 offer value, resulting in the stock’s removal from its Franchise Pick list.

On January 29, Shareholders of Kimberly-Clark and Kenvue overwhelmingly approved all proposals for Kimberly-Clark’s acquisition of Kenvue. Preliminary results show that approximately 96% of Kimberly-Clark shares present at the meeting supported the issuance of common stock for the deal, while roughly 99% of Kenvue’s voting shares (representing about 77% of all outstanding stock) voted in favor of the merger agreement.

CEOs from both companies expressed confidence that the combination will create a global leader in health and wellness by uniting iconic brands like Huggies and Kleenex with Tylenol and Neutrogena. The transaction is currently expected to close in H2 2026, pending final regulatory approvals and customary closing conditions.

Kenvue Inc. (NYSE:KVUE) operates as a consumer health company in the US, Europe, the Middle East, Africa, Asia-Pacific, and Latin America. It operates through three segments: Self Care, Skin Health and Beauty, and Essential Health.

While we acknowledge the potential of KVUE as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you’re looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.

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Disclosure: None. This article is originally published at Insider Monkey.