Tylenol-Maker Kenvue Poised to Get Wall Street Ratings After IPO

May 26, 2023 | blog

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(Bloomberg) — Kenvue Inc., the buyer well being enterprise that Johnson & Johnson spun off this month, will likely be eligible for rankings from a slew of main Wall Street banks subsequent week, providing an opportunity to see how analysts are assessing preliminary public choices amid the newest equities volatility and recession worries. 

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Shares of the corporate have climbed about 20% since May 3, when it raised $3.8 billion within the largest US IPO since 2021. It went public in the course of the slowest interval for share listings since 2016, in keeping with information compiled by Bloomberg News. The so-called quiet interval for rankings from analysts at corporations that participated within the IPO ends May 30.

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The checklist of underwriting banks consists of Goldman Sachs Group Inc., JPMorgan Chase & Co., Bank of America Corp., Citigroup Inc., Deutsche Bank Securities, BNP Paribas, HSBC, RBC Capital Markets, UBS and Siebert Williams Shank. 

Kenvue produces a slew of well-liked merchandise, together with Tylenol, Listerine, Neutrogena and Nicorette. Like J&J, it has been sued over talc-injury claims and it has cautioned that extra might come up outdoors the US and Canada. Still, the enterprise had a web earnings of about $1.5 billion on practically $15 billion in gross sales for the yr ended Jan. 1 on a professional forma foundation, in keeping with firm filings. 

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In a May 4 IPO analysis be aware, David Trainer, chief govt officer of New Constructs, gave the corporate a impartial ranking and stated it lacks the margins of many opponents. Trainer, who wasn’t topic to the rankings quiet interval, added that profitability doesn’t at all times imply inventory. He stated Kenvue’s greater than $41 billion valuation at its IPO could also be on the excessive finish, leaving little upside potential for buyers.  

The firm may have to extend funding and advertising spending to develop, Bloomberg Intelligence analyst Diana Gomes stated in a May 18 be aware.

Read More: Kenvue Might Sacrifice Margin Through 2024 to Revive Growth

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