Jefferies analyst David Hayes maintained a Hold rating on Reckitt today and set a price target of p5,500.00.
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David Hayes has given his Hold rating due to a combination of factors related to Reckitt’s strategic focus on emerging markets. The company has outlined a comprehensive strategy that includes increasing penetration in mature categories, developing new categories, and scaling operations across different countries. This approach is supported by a regional organizational structure that allows Reckitt to capitalize on favorable market conditions.
While these strategies present growth opportunities, they also come with challenges and uncertainties, particularly in execution across diverse markets. The emphasis on creating affordable entry points and leveraging successful innovations from developed markets indicates potential, but the overall impact on financial performance remains to be seen. As such, Hayes’s Hold rating reflects a cautious optimism, acknowledging the potential for growth while considering the risks involved.