Kimberly-Clark Corp (NYSE:KMB, XETRA:KMY) has earned a repeat ‘Buy’ rating and $120 price objective from Bank of America analysts, who believe that the company’s acquisition of Kenvue assets could create long-term value despite near-term integration challenges.
The analysts said the deal appears opportunistic, noting the acquisition multiple of about 14 times Kenvue’s last-twelve-month adjusted EBITDA and a purchase price of $21.01 per share, roughly in line with Kenvue’s market value before Tylenol-related headlines weighed on the stock in September 2025.
Bank of America estimated the combined company could generate about $32 billion in pro forma revenue and roughly $7 billion in EBITDA after the transaction closes.
While investors remain skeptical about Kimberly-Clark’s targeted $1.9 billion in cost synergies within three years and $500 million in revenue synergies within four years, the analysts said they see a path to value creation, particularly if Staples sector valuation multiples improve following a difficult start to 2026.
The report said Kimberly-Clark is a logical buyer for the assets because of complementary product categories and the potential to expand distribution reach.
The bank’s analysts highlighted Kenvue’s self-care brands, including Tylenol and Zyrtec, as potentially the most attractive assets due to their established customer base and stronger market share positions.
They added that Kimberly-Clark could eventually divest underperforming categories tied to the acquisition.
The analysts also noted that litigation concerns surrounding Tylenol and talc products, which have weighed on Kenvue shares, appear to be easing.
Shares of Kimberly-Clark traded at $97 on Thursday afternoon.