Kenvue: New Business, Optimized Portfolio, and Decades of Market Leadership Carve Out a Wide Moat

We are initiating coverage of Kenvue with a fair value estimate of $27.50 per share and a wide moat rating thanks to its brand reputation (intangible assets) and an entrenched standing with retailers and low consumer acquisition costs (cost advantage). Formerly known as Johnson & Johnson’s consumer segment, Kenvue is the world’s largest pure-play consumer health company by revenue, generating $15 billion in annual sales. Our forecast is underpinned by a five-year CAGR of sales of 4.2% and an annual margin expansion with operating margin reaching slightly over 20% by 2027.