Citigroup analysts opened a 90-day positive catalyst watch on Kenvue (NYSE:KVUE) stock, implying a near-term outperformance.
Shares rose more than 1% in early Wednesday trade.
The analysts made their move ahead of the judge’s decision on the Daubert hearings on the Tylenol case, which is expected in early 2024 at the latest.
“Last week, we attended the Daubert hearing and believe the probability of the case being has increased. The ultimate decision is still uncertain, but we see more upside potential in the $23-24 range vs. downside risk in the $18-19 range,” Citi said in a client note.
Despite near-term optimism, Citi analysts remain Neutral-rated on KVUE shares, citing “challenging” fundamentals, including slowing Self Care, China weakness, and a slower-than-expected improvement in Skin Health & Beauty.
Citi has a $23 per share price target on KVUE stock, which implies an upside potential of over 10%.