Kimberly-Clark Downgraded Amid Legal Concerns Over $48.7B Kenvue Acquisition
Kimberly-Clark's shares fell sharply after Evercore ISI analyst Javier Escalante downgraded the stock from Outperform to In Line, slashing his price target from $150 to $120. The MOVE follows the company's $48.7 billion acquisition of Kenvue, which owns Tylenol—a pain reliever now under scrutiny for potential links to autism.
The U.S. government recently advised pregnant women to avoid Tylenol, amplifying litigation risks. Despite Kimberly-Clark's assertion that the deal creates a $32 billion revenue powerhouse with 10 billion-dollar brands, investors remain wary of the legal overhang.