Starboard's Jeff Smith 'thrilled to own' Kenvue at current valuation

[Kenvue Global Headquarter Ribbon Cutting Ceremony]
Dave Kotinsky/Getty Images Entertainment

Starboard Value CEO Jeff Smith said that he is "thrilled to own" Kenvue (NYSE:KVUE [https://seekingalpha.com/symbol/KVUE]) even though the stock is down ~30% year to date.

The activist investor joined Kenvue's board in March as part of a proxy fight settlement [https://seekingalpha.com/news/4417415-kenvue-settles-proxy-battle-with-actvist-starboard], along with two other independent directors.

Speaking on CNBC at the 13D Active Passive-Investor Summit in New York City, Smith said "It was cheap a year ago. It's cheaper now....Am I thrilled to own it at this valuation? Yes."

Since Smith became a board member, former CEO Thibaut Mongon was ousted [https://seekingalpha.com/pr/20164292-kenvue-ceo-mongon-leaves-the-consumer-health-company-as-it-continues-its-strategic-review] in July and replaced by fellow director Kirk Perry on an interim basis. In May, Amit Banat became the new CFO [https://seekingalpha.com/pr/20095947-kenvue-announces-chief-financial-officer-transition], replacing Paul Ruh.

"If you would have told me a year ago that we would have been able to make those changes as fast as we were able to...I would tell you I would be really happy."

He added [https://www.youtube.com/watch?v=FHeIGZNcFWg] that some of Kenvue's brands and business lines have improved compared to a year ago.

Smith noted that the Trump administration's possible linking [https://seekingalpha.com/news/4497441-trump-administration-formally-links-tylenol-use-pregnancy-autism] of Tylenol (acetaminophen), one of Kenvue's most well-known products, to autism if used in pregnancy, is reponsible for much of the company's recent woes.

MORE ON KENVUE

* Kenvue: A Rock Solid 5% Yield [https://seekingalpha.com/article/4830076-kenvue-a-rock-solid-5-percent-yield]
* Kenvue: Trump-Era Volatility Presents A More Attractive Opportunity, But Headwinds Remain [https://seekingalpha.com/article/4826010-kenvue-trump-era-volatility-presents-attractive-opportunity-but-headwinds-remain]
* Kenvue: This Too Shall Pass [https://seekingalpha.com/article/4825573-kenvue-this-too-shall-pass]
* Kenvue asks FDA to not change Tylenol label on potential autism risk [https://seekingalpha.com/news/4505665-kenvue-asks-fda-to-not-change-tylenol-label-potential-autism-risk]
* J&J hit with first U.K. lawsuits over talc-related cancer claims [https://seekingalpha.com/news/4504695-jj-sued-uk-over-talc-related-cancer-claims]