Kimberly-Clark Reaches For Kenvue: Life-Saving Hand Or Capitalizing On Weakness?
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Ragmar Rikberg345 FollowersFollow5ShareSavePlay(9min)Comment(1)SummaryKenvue Inc., spun off from Johnson & Johnson, was designed as a stable, income-oriented investment but has faced significant post-IPO volatility.KVUE's stock performance has suffered from legacy investor selling, management turnover, litigation risks, and a profit warning, yet stabilized after a Kimberly-Clark Corporation takeover proposal.The KMB post merger synergies are estimated at $2.1 billion and a combined EBITDA target of $9 billion.KVUE stock currently trades at an 8% discount to implied deal value, presenting an attractive, though not risk-free, entry point. filadendron/E+ via Getty Images Intro When Kenvue Inc. (KVUE) was spun off from Johnson & Johnson (JNJ) in May 2023 and began trading on the stock market independently, the core idea was to create a stableThis article was written byRagmar Rikberg345 FollowersFollowI’ve managed my investments since 1999, gaining perspective across multiple market cycles. With a background in Economics and ongoing CFA certification, my focus is on uncovering mispriced assets that the market has overlooked. I conduct my analyses in a way that allows me to use them myself — not just casually handed-out buy or sell decisions. While I acknowledge that sentiment and technicals matter — and that today’s algorithm-driven investment environment often prioritizes them over fundamentals — I’m still guided by a fundamentals-first approach.Analyst’s Disclosure:I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article. Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.Recommended For You