Kimberly-Clark shares remain down around 14.5% in late-afternoon trading.  If the losses hold into the close, it would mark the company's steepest one-day drop since October 16, 1987, or just days before the Black Monday crash on October 19, 1987. Earlier, the Kleenex maker unveiled plans to acquire Tylenol producer Kenvue in a $48.7 billion cash-and-stock deal. The announcement sent Kenvue soaring, up 20%. 

Shares of Kimberly-Clark are at their lowest point since late 2019. 

Wall Street analysts are divided on the proposed merger between Kimberly-Clark and Kenvue. Some expect short-term pressure on the stock, while others praised the merger as "strategically transformative"...

Commentary from Wall Street desks (courtsey of Bloomberg):

RBC Capital (Nik Modi)

Says the deal is strategically transformative for Kimberly-Clark in the long run as it adds significant positive diversification to its business mix

"We believe it will take investors some time to process the long-term implications and would expect KMB shares to come under pressure today and likely trade sideways until investors get more context around recent KVUE regulation/litigation headlines as well as confidence that Kimberly-Clark can turn Kenvue's business around"

Vital Knowledge (Adam Crisafulli)

"KVUE brings some iconic brands into the KMB umbrella, and the ~$21/shr purchase price isn't extremely expensive (this only gets KVUE back to where it was trading in Sept.), especially considering ~$2B in synergies, but KMB investors will be wary of the deal given the mounting legal risks facing Tylenol"

Says the consumer staples industry has struggled for several quarters due to macro pressures. KVUE has experienced particular strain given company-specific challenges, such as management turnover and scrutiny from the White House