ISS Backs Kimberly-Clark Kenvue Deal As Valuation Signals Undervaluation

Institutional Shareholder Services (ISS) has recommended that shareholders approve Kimberly-Clark’s proposed $40b acquisition of Kenvue (NYSE:KVUE). The endorsement comes while Kenvue faces ongoing litigation and product safety questions linked to parts of its consumer health portfolio. ISS’s view is expected to be influential ahead of the upcoming shareholder vote on the deal.

Kenvue, the consumer health company behind a range of over the counter and personal care brands, sits at the intersection of branded staples and healthcare. The proposed transaction with Kimberly-Clark would combine household names across tissues, hygiene, and consumer health products at a time when large consumer groups continue to focus on scale and brand reach. For investors, the ISS opinion is another data point to weigh alongside legal and product risk considerations.

Looking ahead, the key question is how shareholders will balance potential benefits of a larger combined platform against ongoing litigation and safety debates. The ISS recommendation does not resolve those issues, but it does shape the context for the vote and any future deal terms or integration plans that may follow.

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NYSE:KVUE 1-Year Stock Price Chart

Why Kenvue could be great value

Quick Assessment ✅ Price vs Analyst Target: At US$17.75, Kenvue trades about 8% below the US$19.33 consensus target. ✅ Simply Wall St Valuation: Simply Wall St currently flags Kenvue as undervalued, trading 39.4% below its estimated fair value. ✅ Recent Momentum: The share price is up roughly 4.3% over the last 30 days.

Check out Simply Wall St’s
in depth valuation analysis for Kenvue.

Key Considerations 📊 ISS support for the Kimberly Clark deal may reduce perceived deal risk, but it does not address ongoing litigation and safety questions around Kenvue’s products. 📊 Monitor any updates to deal terms, the timeline for the shareholder vote, and how the US$40b valuation compares to Kenvue’s trading value over time. ⚠️ The most pressing flagged risk is that Kenvue’s 4.68% dividend is not well covered by earnings or free cash flow, which could matter if legal or integration costs rise. Dig Deeper

For the full picture including more risks and rewards, check out the
complete Kenvue analysis.

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