This Johnson & Johnson spin-off could rally more than 20%, Goldman Sachs predicts

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This Johnson & Johnson spin-off could rally more than 20%, Goldman Sachs predicts
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The firm raised its rating to buy and target price to imply gains of nearly 23% ahead.

Investors may want to scoop up newly public company Kenvue on the cheap, Goldman Sachs said. Analyst Jason English upgraded the stock to buy from neutral. His $29 price target signals shares could rally 22.8% from Wednesday's close. "We see compelling relative valuation with an approaching catalyst for a re-rating," English said in a note to clients Wednesday.

mountain Kenvue vs. the S & P 500 Kenvue, the Johnson & Johnson spin-off sporting brands such as Neutrogena and Tylenol that went public earlier this year, has fallen about 14% from its mid-May peak. In that period, the stock has trailed the S & P 500 by more than 20 percentage points. English attributed the underperformance in part of broader troubles for staples stocks.

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