Reckitt Benckiser: SG upgrades stock to 'buy'

(CercleFinance.com) - On Thursday Societe Generale (SG) upgraded the Reckitt Benckiser stock from "hold" to "buy," maintaining its target price of 6,500 pence, citing valuation grounds, after the British group announced the end of talks over the potential acquisition of Pfizer's consumer health business.


"While RB was widely reported to be in talks with Pfizer, it had not previously disclosed that this was only for part of the consumer health," the French broker wrote in a research report about the stock.

"This removes a major source of investor nervousness, as concerns over whether RB would overpay and how it would be funded are now off the table," it added.

SG pointed out that currently trading at a 2019 P/E of 15x means that the stock is trading at a 14% discount relative to global staples, which prompted the broker to upgrade its rating.



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