Analyst David Hayes of Jefferies maintained a Hold rating on Reckitt, retaining the price target of p5,000.00.
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David Hayes has given his Hold rating due to a combination of factors influencing Reckitt’s performance. The company’s recent quarterly results showed a positive trend, with organic sales growth driven by its core operations. This growth is particularly notable in emerging markets, where Reckitt has managed to perform well despite challenging conditions faced by competitors, such as in China and Latin America.
However, while the company has reiterated its margin guidance and increased brand investment, these positive developments are balanced by the need for cautious optimism. The market’s reaction to these results might lead to short-term rewards for Reckitt’s shares, but the overall outlook suggests that maintaining a Hold rating is prudent as the company navigates these dynamics.
Hayes covers the Consumer Defensive sector, focusing on stocks such as Nestlé SA, Reckitt, and Henkel AG & Co. KGaA. According to TipRanks, Hayes has an average return of 2.4% and a 59.52% success rate on recommended stocks.
In another report released on July 21, Deutsche Bank also reiterated a Hold rating on the stock with a p5,300.00 price target.