Reckitt: Sector-Driven Share Price Weakness Masks Solid Fundamentals and Long-Term Growth Upside

Bernstein analyst Callum Elliott assigned a Buy rating on Reckitt today and set a price target of p7,500.00.

Callum Elliott has given his Buy rating due to a combination of factors, starting with the view that the recent share price correction is largely driven by sector-wide weakness rather than a fundamental deterioration at Reckitt. He notes that the company’s latest results showed solid organic growth, an earnings beat, and guidance that aligns with both its medium-term targets and market expectations.

At the same time, Elliott acknowledges the recent downward revisions to earnings, but frames them as largely technical—stemming from stranded costs after the Essential Home separation, a higher tax rate, and lower associate contributions—rather than structural issues with the core business. With key overhangs such as the EH disposal behind the company, litigation trends improving, and the core portfolio still delivering robust growth, he believes the stock is undervaluing Reckitt’s long-term growth potential, supporting his Outperform rating and 7,500 GBp price target.