Independent research on the U.S. markets, Baptista Research

Baptista Research

Independent research on the U.S. markets

Baptista Research is an independent financial research house focused on the U.S. markets. We provide equity research as well as credit research reports on the top-listed U.S. companies with most of our focus on technology, consumer goods and services, automobiles, industrials, oil and gas, pharma, and healthcare. Our research has served more than 3000 institutional investors including mutual funds, hedge funds, banks, family offices, and various buy-side firms. We operate a research subscription service where institutions, as well as retail investors, can have priority access to all our research. We also have a wide distribution of our research reports across some of the top global financial platforms. Apart from equity research and credit research, we also provide advisory services with respect to mergers & acquisitions (M&A), private equity/ venture capital fundraising, valuation reports, and investment management services for corporates.
Baptista Research is owned and managed by Ishan Majumdar, an ex-Venture Capitalist/ Investment Banker, a Chartered Accountant, and a Masters’ degree holder in Management from HEC Paris. Ishan has nearly a decade of experience in Mergers and Acquisitions, Leveraged Buyouts (LBOs), Venture Capital Investing, Corporate Strategy, and Valuation in front-office roles at the likes of BNP Paribas CIB, Credit Agricole CIB, Groupe Danone, and TIW Private Equity. He has worked on and closed multiple acquisition deals, leveraged buyouts, and start-up investment transactions.

Equity Bottom-Up

<ul><li>Kenvue Inc. — the consumer health spin-off from Johnson & Johnson — is finding itself under the activist microscope once again.</li><li>Just weeks after averting a proxy battle with Starboard Value by appointing its CEO, Jeffrey Smith, to the board, Kenvue is now facing fresh pressure from TOMS Capital Investment Management.</li><li>The New York-based hedge fund has taken a stake in the $45 billion company and is urging management to explore a full sale or break up certain assets.</li></ul>

Kenvue Inc. — the consumer health spin-off from Johnson & Johnson — is finding itself under the activist microscope once again.Just weeks after averting a proxy battle with Starboard Value by appointing its CEO, Jeffrey Smith, to the board, Kenvue is now facing fresh pressure from TOMS Capital Investment Management.The New York-based hedge fund has taken a stake in the $45 billion company and is urging management to explore a full sale or break up certain assets.

Kenvue Under Pressure: Why TOMS Capital Might Be Right About A Breakup!

<ul><li>Kenvue's fourth quarter and full year 2024 financial results reflect a mixed performance, characterized by both challenges and improvements.</li><li>The company reported an organic sales growth of 1.5% for the year, which did not meet expectations partially due to a decline in demand for products related to pediatric pain and a reduction in distributor orders in Asia Pacific, notably China.</li><li>Despite these setbacks, Kenvue expanded its adjusted gross margin by 200 basis points to 60.4% for the year and delivered an adjusted diluted EPS of $1.14.</li></ul>

Kenvue's fourth quarter and full year 2024 financial results reflect a mixed performance, characterized by both challenges and improvements.The company reported an organic sales growth of 1.5% for the year, which did not meet expectations partially due to a decline in demand for products related to pediatric pain and a reduction in distributor orders in Asia Pacific, notably China.Despite these setbacks, Kenvue expanded its adjusted gross margin by 200 basis points to 60.4% for the year and delivered an adjusted diluted EPS of $1.14.

Kenvue: From Band-Aids to Billion-Dollar Brands—What’s Fueling Its Next Growth Phase?

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<ul><li>First, I sold out of Kenvue (KVUE) when the stock surged earlier this week. We locked in a nice 18% total return. </li><li>Kenvue and its consumer healthcare peers Haleon (HLN), Proctor &amp; Gamble (PG) and Colgate-Palmolive (CL), have all been strong given their defensive nature in a volatile market.</li><li>I still believe that Kenvue (KVUE) is a solid company with 15% upside potential, but I have higher conviction in my other recommendations.</li></ul>

First, I sold out of Kenvue (KVUE) when the stock surged earlier this week. We locked in a nice 18% total return. Kenvue and its consumer healthcare peers Haleon (HLN), Proctor &amp; Gamble (PG) and Colgate-Palmolive (CL), have all been strong given their defensive nature in a volatile market.I still believe that Kenvue (KVUE) is a solid company with 15% upside potential, but I have higher conviction in my other recommendations.

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I’m closing out my Kenvue (KVUE) recommendation and will be selling my shares.
</li>
<li>
Following the spin-off from Johnson &amp; Johnson (JNJ), KVUE shares performed poorly for a variety of reasons (lockluster growth, Tylenol related litigation, etc.) that I thought were overblown.
</li>
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At the time, Kenvue was trading at a sharp discount to its consumer health care peers. Today, Kenvue trades at a slight discount to peers (21 P/E vs. 23.3x for the group).
</li>
</ul>



I’m closing out my Kenvue (KVUE) recommendation and will be selling my shares.


Following the spin-off from Johnson &amp; Johnson (JNJ), KVUE shares performed poorly for a variety of reasons (lockluster growth, Tylenol related litigation, etc.) that I thought were overblown.


At the time, Kenvue was trading at a sharp discount to its consumer health care peers. Today, Kenvue trades at a slight discount to peers (21 P/E vs. 23.3x for the group).



<ul><li>The latest quarterly earnings for Kenvue highlights the company's strategic focus amidst challenging market conditions, with a keen emphasis on innovation, operational efficiency, and brand investment.</li><li>The company reported a modest year-over-year organic growth of 0.9%, down from its previous quarter but on top of a 3.6% growth registered last year.</li><li>This performance illustrated a mixed picture of steady progress in some business areas and challenges in others.</li></ul>

The latest quarterly earnings for Kenvue highlights the company's strategic focus amidst challenging market conditions, with a keen emphasis on innovation, operational efficiency, and brand investment.The company reported a modest year-over-year organic growth of 0.9%, down from its previous quarter but on top of a 3.6% growth registered last year.This performance illustrated a mixed picture of steady progress in some business areas and challenges in others.

Kenvue Inc.: The Impact Of Recent Consumer Trends & Its Retail Strategy & Other  Major Drivers

United States

Kenvue Inc. operates as a consumer health company. The Company offers a consumer health portfolio in self-care, skin health & beauty, and essential health products. Kenvue serves customers worldwide.

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Kenvue (KVUE US)

Kenvue Under Pressure: Why TOMS Capital Might Be Right About A Breakup!

Kenvue Inc. — the consumer health spin-off from Johnson & Johnson — is finding itself under the activist microscope once again. Just weeks...

Baptista Research

Kenvue: From Band-Aids to Billion-Dollar Brands—What’s Fueling Its Next Growth Phase?

Kenvue's fourth quarter and full year 2024 financial results reflect a mixed performance, characterized by both challenges and improvements. The...

Baptista Research

Weekly Update (CON, UNTC, KVUE, TSVT)

First, I sold out of Kenvue (KVUE) when the stock surged earlier this week. We locked in a nice 18% total return. Kenvue and its consumer...

Richard Howe

Sell Kenvue + What I’m Buying

I’m closing out my Kenvue (KVUE) recommendation and will be selling my shares. Following the spin-off from Johnson & Johnson (JNJ), KVUE shares...

Richard Howe

Kenvue Inc.: The Impact Of Recent Consumer Trends & Its Retail Strategy & Other Major Drivers

The latest quarterly earnings for Kenvue highlights the company's strategic focus amidst challenging market conditions, with a keen emphasis on...

Baptista Research

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