Reckitt Benckiser: Jefferies raises target price

(CercleFinance.com) - While maintaining its 'hold' recommendation on Reckitt Benckiser shares, Jefferies has raised its target price for them from 4,400 pence to 5,100 pence, citing a margin outperformance by the British hygiene and health products group.


This overshoot, combined the execution of cost savings in H2 2024 with a tailwind on advertising and promotional expenditure (A&P) of around 60 basis points, explains the broker.

Reckitt's core trades on a P/E of around 17.5x. This requires belief in consistent growth of over 4%, which may still require further sacrifices on gross and operating margins, Jefferies warns.


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