11:25 AM EDT, 05/07/2024 (MT Newswires) -- CFRA, an independent research provider, has provided MT Newswires with the following research alert. Analysts at CFRA have summarized their opinion as follows:

Our 12-month target of $23, unchanged, is 19x our FY 25 EPS view of $1.22 (up $0.07, FY 24 EPS down $0.04 to $1.04), within the trading range of 14.7x-21.8x. We view our P/E as justified by KVUE's newly announced "Vue Forward," which is intended to enhance organizational efficiencies and position KVUE for growth. Q1 adj-EPS of $0.28 (-23% Y/Y) beat by $0.05 on revenue of $3.9B (+1% Y/Y), ~3% above consensus. Organic growth of 1.9% comprised 5% in price/mix offset by a 3.1% volume decline. Adj-gross margin of 60.2% (+300 bps Y/Y) benefited from price/mix, volumes, supply chain efficiency, and easing inflation. Notably, brand marketing was up 15% Y/Y and is funded through margin expansion and transition service agreement exits. As part of Vue Forward, KVUE will reduce 4% of its 22,000 global workforce reducing annual costs by $350M beginning in FY 26. We see the initiatives adding to our positive sentiment on KVUE shares, though we anticipate benefits taking time to ramp, justifying our use of FY 25's EPS.