Reckitt: Solid Execution and Emerging Market Strength Offset by Sales Growth Uncertainty, Supporting a Hold Rating

David Hayes, an analyst from Jefferies, maintained the Hold rating on Reckitt. The associated price target was lowered to p5,900.00.

David Hayes has given his Hold rating due to a combination of factors that balance solid execution with lingering uncertainties. He highlights that Reckitt’s overall organic sales growth exceeded expectations, largely thanks to strong pricing and mix, while developed markets such as the U.S. and Europe underperformed because of an unusually mild cold and flu season.

At the same time, he notes that emerging market momentum is encouraging and shows management can mitigate volatility in weaker developed regions. However, he also points out that earnings expectations for 2026 may need to be trimmed due to divestment-related noise, and that the outlook for future sales growth remains the critical swing factor, justifying a more neutral Hold stance rather than a more decisive rating change.

According to TipRanks, Hayes is a 3-star analyst with an average return of 2.5% and a 56.50% success rate. Hayes covers the Consumer Defensive sector, focusing on stocks such as DANONE SA, Nestlé SA, and Unilever.

In another report released on February 23, Morgan Stanley also maintained a Hold rating on the stock with a p6,500.00 price target.