"A chorus of Wall Street analysts beg to differ, reaffirming Kenvue's fundamental resilience and seeing this as an opportunity to buy the dip. In notes distributed to clients Monday morning, firms such as BofA Securities and Canaccord Genuity encouraged investors to view the sell-off as a buying opportunity rather than confirmation of a deep and lasting threat to Kenvue's business."
"Canaccord analysts wrote the bank believes the legal risk is minimal given that a mass tort lawsuit on similar claims "was essentially shut down" in December 2023. The bank also noted a statement from HHS that any claims about Kennedy's report were speculation. Calling the market sell-off a "major overreaction," it added that it sees "no reputable study [that] has linked acetaminophen use to increased risk of [autism spectrum disorder].""
Kenvue, the consumer-health spin-off from Johnson & Johnson, experienced a sharp stock rout after a report said Robert F. Kennedy Jr. planned to link prenatal Tylenol use to autism. Intraday losses neared 15% and about 9% of market capitalization was erased. Kennedy serves as HHS secretary and leads the "Make America Healthy Again" movement. Several Wall Street analysts, including BofA Securities and Canaccord Genuity, characterized the decline as an overreaction and urged buying the dip. Canaccord said legal risk is minimal after a similar mass tort was essentially shut down in December 2023 and cited HHS statements calling such claims speculative.
Read at Fortune
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