Kimberly-Clark's Deal for Kenvue's Struggling Operations Far From a Slam Dunk

Like its peers, narrow-moat Kimberly-Clark has been faced with numerous challenges, including a tepid economic environment and elevated cost pressures stemming from inflation and tariffs. But we don't think adding Kenvue's languishing consumer health brands is the right elixir. This counters Kimberly's recent bent to focus its resources on its core personal care brands across baby, feminine, and adult care. And it will take significant resources to drive accelerating sales and profits at Kenvue, in our view.