Reckitt’s Uncertain Outlook: Hold Rating Amid Strategic and Operational Challenges

In a report released today, David Hayes from Jefferies maintained a Hold rating on Reckitt (RKT – Research Report), with a price target of p5,000.00.

David Hayes has given his Hold rating due to a combination of factors impacting Reckitt’s current financial outlook. The company has faced significant challenges, including missing its first-quarter guidance in both the EU and US markets, which highlights the unpredictable nature of its current trading environment. Additionally, there is a lack of clarity surrounding several key issues, such as the divestment of EssHome, the resolution of US litigation, potential buyers for its Nutrition segment in 2026, and the realistic midterm performance expectations for the core business.
These uncertainties contribute to a cautious outlook, as even optimistic projections suggest a potential stock price of over £60 within a year, while the current hurdles might only justify a valuation closer to £50. Given these circumstances, Hayes’s Hold rating reflects a balanced view, acknowledging both the potential upside and the significant risks that Reckitt faces in navigating its strategic and operational challenges.

According to TipRanks, Hayes is ranked #3356 out of 9472 analysts.