Kenvue: Priced at $20 per Share as Part of Secondary Stock Offering for Johnson & Johnson

Wide-moat Kenvue announced late on May 14 that it had priced its secondary underwritten public offering of 182.3 million of its shares still owned by Johnson & Johnson at $20 apiece. We maintain our fair value estimate of $25.50 per share as we have made no changes to our model. Given where the stock is currently trading, we think $20 per share for the exchange is fairly priced, but we still believe that the market is underappreciating the firm’s portfolio of category-leading brands and that the stock has a lot of upside.