Kenvue Gets Knocked Out as Tylenol Takes Political Hit

America’s go-to pain reliever has become a bitter pill for investors. Tylenol maker KenvueKVUE

— the two-year-old Johnson & Johnson spinoff — has seen its stock plunge nearly 40% since going public, dropping 8% after President Trump claimed that pregnant women shouldn’t take the medicine due to potential autism links. The company’s market value has evaporated by over $10B as CEO Kirk Perry scrambles to contain the crisis.

• Now trading at all-time lows with a 5% dividend yield, Kenvue is starting to look like a contrarian opportunity — especially since the 2023 Tylenol-autism lawsuit was dismissed for lack of credible evidence.
• Rothschild analysts upgraded Kenvue to “Buy” and called the selloff an overreaction that “overshot the risk,” noting that sales to expectant mothers represent less than 0.5% of revenue.

Beyond the noise: Despite the controversy, the company’s portfolio extends far beyond Tylenol to brands including Band-Aid, Neutrogena, and Listerine, which generate the bulk of its revenue. Activist investors now hold 2.4% of shares and are pressuring the board to consider options from brand sales to a potential takeover. And while litigation fears have rattled markets, Rothschild kept its price target at $22, citing a “clear path to value creation” for investors.