Canaccord Genuity raised its price target on Kenvue Inc. (NYSE:KVUE) to $18 from $17 while maintaining a Hold recommendation on the stock. According to InvestingPro data cited with the company update, Kenvue is trading at a price-to-earnings ratio of 24.82 and a PEG ratio of 0.7, metrics the firm characterized as indicating a reasonable valuation relative to the company's projected growth.
The consumer health company released fourth-quarter and full fiscal 2025 results Monday after the close. On a headline basis, Kenvue reported sales that increased 3.2% year-over-year, a figure that compares to a Street sales estimate of 0.4%. On an organic basis, sales rose 1.2% year-over-year.
The company said all business segments contributed growth in the fourth quarter. Kenvue reported adjusted earnings per share of $0.27 for the quarter; depending on the referenced consensus, that figure represented both an upside and a shortfall. In one comparison noted in published data, adjusted EPS of $0.27 exceeded a Street estimate of $0.22. In another summary of analyst expectations, the same $0.27 was reported as below an anticipated $0.33.
Revenue for the quarter was reported at $3.78 billion, which was lower than a different consensus estimate of $4.11 billion despite the year-over-year 3.2% increase. Kenvue disclosed organic sales growth of 1.2%, with price and mix contributing 2.3% while volumes declined 1.1%.
Management called out two headwinds facing the business in the quarter: lower-than-normal seasonal illness rates and inventory reductions by retail customers. The company also saw category-level volume weakness, with self-care volumes down 3.1% and skin health and beauty volumes declining 0.8%.
Kenvue did not host an analyst call alongside the results because of the outstanding acquisition by Kimberly-Clark. The transaction remains on track to close sometime in the second half of 2026, according to company statements. Management emphasized continued focus on disciplined execution in the run-up to the deal closing.
Canaccord commented that Kenvue's share performance is expected to remain closely linked to Kimberly-Clark's stock under the terms of the takeover. The deal consideration is structured as $3.50 in cash per Kenvue share plus 0.14625 Kimberly-Clark shares for each Kenvue share.
In other market developments, BofA Securities resumed coverage of Kenvue with no rating assigned, a move tied in public commentary to the pending acquisition. The combination of mixed top-line and bottom-line comparisons to various analyst expectations, inventory movements at retailers, and soft category volumes illustrate the operational and market context as Kenvue moves through the transaction process.
Contextual note: The results encompass a mixture of metrics that both outperformed and underperformed different Street estimates. The company reported a year-over-year improvement in sales, positive contributions from pricing and mix, and simultaneous volume weakness in key consumer categories.