Tylenol maker's stock lost billions after a rumor linking the medicine to autism. Wall Street says buy the dip as one bank sees a 'major overreaction'

This week, Kenvue, the consumer health spin-off from Johnson & Johnson, found itself at the epicenter of a market tempest this week. It began when The Wall Street Journal reported Robert F. Kennedy Jr., a longtime promoter of scientifically baseless causes for autism, planned to link Tylenol use during pregnancy to the condition. A stock rout ensued, since Kennedy is secretary of the U.S. Department of Health & Human Services and leads the “Make America Healthy Again” movement, or MAHA. An intraday slump neared 15% at one point after the Journal ‘s report before retreating, but roughly 9% has still been wiped off Kenvue’s market cap.

A chorus of Wall Street analysts beg to differ, reaffirming Kenvue’s fundamental resilience and seeing this as an opportunity to buy the dip. In notes