Kenvue's Trading Volume Drops 56% to 293rd Rank Amid Takeover Speculation

On June 16, 2025, Kenvue (KVUE) saw a trading volume of $354 million, a significant 56.11% decrease from the previous day, placing it at the 293rd position in the day's stock market rankings. Despite this, Kenvue's stock price rose by 0.93%.

As the August expiration of its post-spin-off tax agreement with Johnson & Johnson approaches, Kenvue Inc (NYSE:KVUE) is once again the focus of takeover speculation. This potential clearance for a sale has sparked interest from various potential acquirers, including Procter & Gamble Co, Unilever PLC, and Haleon PLC. Analysts at Jefferies highlight that despite Kenvue's concentration and uneven performance, its brand lineup, which includes Tylenol, Neutrogena, Aveeno, BAND-AID, and Listerine, remains attractive. They suggest that applying existing brand-building capabilities and resources could deliver a better return from Kenvue's brands.

Among the potential acquirers, P&G stands out as the most logical choice due to its strong balance sheet, portfolio fit, and resources. Jefferies estimates that a potential all-cash deal could drive approximately 5% earnings per share (EPS) accretion in the first year and 7.5% in the second year, assuming a 20% premium and $500 million in synergies. P&G's presence in eight of Kenvue's top 10 categories, along with different product sets, minimizes antitrust risk.

Unilever is also a potential acquirer, but its ability to execute a transaction could depend on divesting its food and ice cream businesses. Jefferies notes that Unilever would need to exit these sectors to manage debt levels, but a deal would provide significant entry into the consumer health market. Haleon, on the other hand, could offer more modest financial benefits but make strategic sense. Recent portfolio changes by Haleon, including divesting ChapStick, Lamisil, and Nicotinell, indicate readiness for consolidation.

Even without an acquisition deal, analysts remain bullish on Kenvue, maintaining their 'Buy' rating and $27 price target. They believe that the company is in the midst of a growth transformation, with recognizable brands finally receiving the reinvestment dollars they need. A step-up in innovation, marketing, and tech/data investments is expected to yield positive results in the second half of 2025.

Ask Aime: Which stock will rise post Johnson & Johnson tax agreement?