Personal Care Industry Poised For Growth: Analyst Initiates Coverage On These 3 Stocks
Portfolio Pulse from Lekha Gupta
Piper Sandler analyst Korinne Wolfmeyer initiated coverage on personal care stocks, highlighting the industry's potential for growth due to consumer spending resilience. Perrigo Co PLC (PRGO) received an Overweight rating with a $37 price target, while Kimberly-Clark Corp. (KMB) also got an Overweight rating with a $146 target. Kenvue Inc (KVUE) was rated Neutral with a $20 target. PRGO's sales strength, new products, and EPS forecasts are positive, while KMB's focus on innovation and margin improvement are seen as growth drivers. KVUE's reliance on branded products and potential litigation are concerns. PRGO's stock rose by 3.01%, KVUE's by 0.59%, and KMB's fell by 0.12% on the last check Friday.
November 17, 2023 | 7:54 pm
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POSITIVE IMPACT
Kimberly-Clark Corp. was given an Overweight rating with a $146 price target, with the analyst noting the company's product resilience and management's focus on innovation and margin improvement.
Despite a slight stock price dip, the Overweight rating and emphasis on innovation and margin improvement are likely to be viewed positively by investors, potentially leading to stock price recovery.
CONFIDENCE 80
IMPORTANCE 75
RELEVANCE 85
POSITIVE IMPACT
Perrigo Co PLC received an Overweight rating with a positive outlook due to its sales composition and new product potential, alongside EPS estimates of $2.56 for FY23 and $3.08 for FY24.
The Overweight rating and positive EPS forecasts suggest confidence in PRGO's growth, which could lead to increased investor interest and a potential rise in stock price.
CONFIDENCE 85
IMPORTANCE 80
RELEVANCE 90
NEUTRAL IMPACT
Kenvue Inc received a Neutral rating with a $20 price target. Concerns include reliance on branded products, recent separation from Johnson & Johnson, and potential litigation.
The Neutral rating and concerns raised by the analyst may lead to cautious investor sentiment, likely resulting in a neutral impact on the stock price in the short term.
CONFIDENCE 75
IMPORTANCE 70
RELEVANCE 75