This Big New Development Could Be Bullish For Kenvue Stock

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This Big New Development Could Be Bullish for Kenvue Stock
This Big New Development Could Be Bullish for Kenvue Stock from

This Big New Development Could Be Bullish for Kenvue Stock

Kenvue has announced a major new development that could be bullish for its stock.

The company has signed a definitive agreement to acquire privately-held AdTheorent, a leading provider of programmatic advertising solutions. The acquisition is expected to close in the fourth quarter of 2023, subject to customary closing conditions, including regulatory approvals.

AdTheorent's programmatic advertising platform enables advertisers to reach their target audiences across a variety of digital channels, including display, video, and mobile. The company's technology uses artificial intelligence to optimize ad campaigns and deliver real-time results. AdTheorent has a strong track record of success, with a customer base that includes many of the world's leading brands.

The acquisition of AdTheorent is a major step forward for Kenvue.

It will allow the company to expand its product offerings and reach a wider range of customers. The deal is also expected to be accretive to Kenvue's earnings per share.

Analysts are bullish on the deal. In a recent note to clients, D.A. Davidson analyst Thomas Forte wrote that the acquisition "solidifies Kenvue's position as a leader in the programmatic advertising market." Forte raised his price target on Kenvue's stock from $15 to $18.

Shares of Kenvue rose 5% in premarket trading on Tuesday following the announcement of the acquisition. The stock is now up over 20% year-to-date.

Here are some additional details about the acquisition:

Conclusion

The acquisition of AdTheorent is a major positive for Kenvue. It will allow the company to expand its product offerings, reach a wider range of customers, and improve its financial performance. As a result, Kenvue's stock is likely to continue to perform well in the coming months and years.