Hold Rating Maintained Amid Softer Near-Term Sales Outlook and Margin Uncertainty Despite Emerging Market Support

In a report released today, David Hayes from Jefferies maintained a Hold rating on Reckitt, with a price target of p5,600.00.

David Hayes has given his Hold rating due to a combination of factors, including a softer near‑term sales outlook and lingering concerns on profitability. He expects like‑for‑like growth in the first quarter of 2026 to undershoot market expectations, as prior one‑off benefits in U.S. Self Care unwind and North American sales turn slightly negative year on year.

At the same time, Hayes acknowledges that emerging market momentum should support full‑year like‑for‑like growth above 4%, with the balance between investment in newer and developed markets likely improving by year‑end. However, he remains cautious about the company’s ability to sustain an operating margin around 27%, and this combination of modest growth, an anticipated early‑year miss, and margin uncertainty justifies a neutral, or Hold, stance for now.

In another report released on March 25, Deutsche Bank also reiterated a Hold rating on the stock with a p5,460.00 price target.

Based on the recent corporate insider activity of 28 insiders, corporate insider sentiment is negative on the stock. This means that over the past quarter there has been an increase of insiders selling their shares of RKT in relation to earlier this year.