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’

No proof, even a mixed MAHA reaction

No smoking gun

Nick Lichtenberg is Fortune Intelligence editor and was formerly Fortune's executive editor of global news.

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 distributed to clients Monday morning, firms such as BofA Securities and Canaccord Genuity encouraged investors to view the sell-off as a buying opportunity rather than confirmation of a deep and lasting threat to Kenvue’s business.

Canaccord analysts wrote the bank believes the legal risk is minimal given that a mass tort lawsuit on similar claims “was essentially shut down” in December 2023. The bank also noted a statement from HHS that any claims about Kennedy’s report were speculation. Calling the market sell-off a “major overreaction,” it added that it sees “no reputable study [that] has linked acetaminophen use to increased risk of [autism spectrum disorder].” The headline risk, if any, is losing a small segment of consumers rather than a multibillion-dollar verdict.

Canaccord also monitored public sentiment

Analysts at BNP Paribas said Friday proving a link to autism remains unlikely given prior rulings that Tylenol is safe, including the FDA saying it hasn’t found clear evidence tying acetaminophen to developmental risks, and the American College of Obstetricians and Gynecologists making a similar recommendation. The FDA does advise pregnant women to check with their doctors about using it, though.

Despite ongoing lawsuits, federal judges have so far found the scientific evidence linking acetaminophen use in pregnancy to autism or ADHD to be inconclusive, leading to the dismissal of several high-profile cases.

Kenvue itself has forcefully denied any wrongdoing and highlighted the regulatory consensus. In a statement to the

For those watching closely, the reaction across Wall Street offers an important lesson in how medical controversies play out in public markets. While headline risk may rattle stocks, nuanced assessment from analysts can quickly restore perspective and, in some cases, spark recovery. As it stands, Kenvue’s Tylenol saga appears to be more noise than signal—at least for now, according to those paid to know.

For this story, Fortune used generative AI to help with an initial draft. An editor verified the accuracy of the information before publishing.