Analyst David Hayes of Jefferies maintained a Hold rating on Reckitt (RKT – Research Report), retaining the price target of p4,400.00.
David Hayes has given his Hold rating due to a combination of factors impacting Reckitt’s financial outlook. The company’s fourth-quarter sales growth fell short of expectations, which, despite a favorable margin performance for the fiscal year, raises concerns about its ability to sustain momentum. The underlying operational margin exceeded consensus estimates, primarily due to cost-saving measures, but these gains are expected to be counterbalanced by dis-synergies related to the Essential Home divestment.
Additionally, the outlook for 2025 suggests potential downward revisions to earnings consensus by 1-3%, with risks of further reductions as more details on dis-synergies and tax leakage emerge. The company’s organic sales growth was at the lower end of expectations, which could lead to underperformance relative to the market. These elements combined suggest a cautious approach, justifying the Hold rating as the company navigates these challenges.
According to TipRanks, Hayes is a 4-star analyst with an average return of 3.7% and a 62.94% success rate.
In another report released on February 27, J.P. Morgan also maintained a Hold rating on the stock with a £55.00 price target.