Reckitt Benckiser: RBC maintains 'underperform' rating.

(CercleFinance.com) - RBC Capital Markets maintains an "underperform" rating and 5,600 pence target price on Reckitt Benckiser, reacting to the British consumer goods maker's putative interest in Pfizer's consumer health business.


"We don't know if RB will acquire Pfizer's consumer health business, nor do we know if they will dispose of the newly integrated Home and Hygiene divisions to pay for it," the broker writes in a note.

"But we do know that selling slow growth businesses cheaply to buy (possibly) higher growth businesses expensively does not magically "create" value for shareholders," it adds.

In short, it is not because you are selling an asset for 1 dollar and buy a different one with that 1 dollar that you're going to be much better off, RBC warns in the report.

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