Why Is Kenvue Stock Rising Today?

Kenvue (KVUE) shares jumped nearly 4% in early trading on Tuesday and became the top trending ticker on Stocktwits after Citigroup stated that it sees limited legal risk for the company following President Donald Trump's discouragement of pregnant women from taking Acetaminophen, the active ingredient in Tylenol.

Citi maintained a ‘Neutral rating on the stock with a $20 price target, according to TheFly. Citi expects Kenvue shares to trade higher on Tuesday, following yesterday's selloff, given the lack of new scientific evidence presented by the Trump administration regarding Tylenol use.

The firm stated, however, that there could be a risk associated with Tylenol consumption due to the negative headlines.

Retail sentiment on Kenvue jumped to ‘extremely bullish’ from ‘neutral’ territory a day ago, with message volumes at ‘extremely high’ levels, according to data from Stocktwits. The retail user message count on the stock increased by 1,860% in the last 24 hours on Stocktwits, as of Tuesday morning.

Evercore ISI lowered the firm's price target on Kenvue to $18 from $23 and maintained an ‘In Line’ rating after FDA commissioner Marty Makary announced the start of a process to change the safety label on Acetaminophen. This is to suggest a potential link between its use and an increased risk of neurological conditions such as autism.

Barclays analyst Lauren Lieberman noted that the Trump administration's views on the links between Tylenol and autism are contrary to the mainstream medical establishment. The firm's "rough math" suggests that Kenvue's 17% selloff since September 4 is overdone, even in the "highly-unlikely scenario" that its U.S. Acetaminophen business is reduced to zero.

Shares of Kenvue have declined nearly 24% in the last 12 months. 

For updates and corrections, email newsroom[at]stocktwits[dot]com.

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