Kimberly-Clark Corporation (KMB) Receives Boost on Kenvue Acquisition Push as Evercore ISI Warns of Competition Pressure

Kimberly-Clark Corporation (NASDAQ:KMB) is one of the best long-term retirement stocks. On January 29, shareholders approved the proposed acquisition of Kenvue by Kimberly-Clark Corporation (NASDAQ:KMB). The voting results indicate that 96% of Kimberly-Clark Corp approved the issuance of shares in connection with the proposed acquisition.

The proposed merger is poised to result in a combined company with a significant presence in global health and wellness. It will result in the merger of Kimberly-Clark brands, including Huggies and Kotex, with Kenvue’s Aveeno, Band-Aid, and Tylenol.

Earlier on January 28, Evercore ISI lowered its price target of Kimberly-Clark Corp from $120 to $115 while reiterating an In Line rating. The price cut comes amid growing concerns of stiff competition in the US diaper market. Retailers are reportedly using diapers as loss leaders to attract shoppers.

The end of exclusivity at Costco, which holds a significant share in US diaper sales, is also seen as a headwind. Kimberly-Clark Corp has also stopped manufacturing Costco’s private-label diapers. Walmart has already rolled out a second China-imported diaper brand amid shipping costs and tariffs expected to intensify competition in the sector.

Evercore expects continued pressure on the diaper profit pool to significantly impact Kimberly-Clark more than its competitors.

Kimberly-Clark Corporation (NASDAQ:KMB) is a leading global manufacturer of personal care, consumer tissue, and professional products, with brands such as Huggies, Kleenex, Scott, and Kotex. The company serves over 175 countries and focuses on products made from natural or synthetic fibers.

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