Reckitt’s Balanced Risk-Reward Profile Amidst Strong Performance and Strategic Transformations

Morgan Stanley analyst Sarah Simon downgraded the rating on Reckitt to a Hold today, setting a price target of p6,100.00.

Sarah Simon’s rating is based on a combination of factors that have influenced Reckitt’s performance and market position. The company has successfully navigated several challenges, including resolving significant litigation issues that were a concern earlier in the year. This resolution has contributed to Reckitt’s strong performance, allowing it to outperform its peers in the household and personal care sector.
Despite these achievements, the current valuation of Reckitt suggests a more balanced risk-reward profile. The company’s growth, while solid, has not reached the mid-single-digit expectations initially set for the year. Additionally, the disposal of Essential Home and the ongoing portfolio transformation have been factored into the decision to maintain a Hold rating, as Reckitt now trades in line with major competitors like Unilever on key financial metrics.

In another report released on December 8, Kepler Capital also maintained a Hold rating on the stock with a p4,900.00 price target.

Based on the recent corporate insider activity of 20 insiders, corporate insider sentiment is positive on the stock. This means that over the past quarter there has been an increase of insiders buying their shares of RKT in relation to earlier this year.