Kenvue Inc shares rose 2.5% in pre-market trading on Monday boosted by an upgrade by Deutsche Bank.
The German investment bank has moved the firm, the consumer-health business spun-out of Johnson & Johnson (NYSE:JNJ), to 'buy' from 'hold' with an unchanged price target of $27.
Analyst Steve Powers sees the company, which owns Band-Aid, Listerine and Neutrogena, as oversold.
"While certain fundamental uncertainties and legal liability risks (talc, acetaminophen) outlined in our initiation report are still valid and outstanding, they are now more than adequately discounted in current valuation," Powers said.
"Our $27 price target remains unchanged and implies over 25% upside—the majority of which we see the stock capable of achieving over the next 3-6 months," he added.
Kenvue debuted on the New York Stock Exchange in May with J&J generating $13.2 billion in cash proceeds as a result of its debt offering and initial public offering.