Reckitt Benckiser Group (RKT)

Sector:

Household Goods

Index:

FTSE 100

4,407.00p
   
  • Change Today:
      14.00p
  • 52 Week High: 6,082.00
  • 52 Week Low: 4,110.00
  • Currency: UK Pounds
  • Shares Issued: 700.47m
  • Volume: 1,062,390
  • Market Cap: £30,870m

Berenberg downgrades Reckitt to 'hold'

By Iain Gilbert

Date: Friday 27 Oct 2023

LONDON (ShareCast) - (Sharecast News) - Analysts at Berenberg downgraded personal care group Reckitt Benckiser on Friday from 'buy' to 'hold', saying it was now "difficult to identify a catalyst".
Reckitt announced its third-quarter sales on Wednesday, with group like-for-like sales growth of 3.4%, which was a touch below visible alpha consensus forecasts of 3.7%.

Berenberg said the miss was driven by Reckitt's nutrition division, where like-for-like sales declined by 11.9%, which more than offset stronger-than-expected like-for-like sales growth in the hygiene division, which grew by 8.1%.

The German bank said that since it reinstated coverage on Reckitt with a 'buy' rating in 2019, the stock was down by 6%, a "disappointing performance" despite the "impressive turnaround" in the company's performance in the last three years.

"Our investment thesis was based on an improvement in operating performance underpinning a stock re-rating, and this has not materialised," said Berenberg, which also lowered its target price on the stock from 7,170.0p to 6,400.0p.

Looking ahead, the analysts said a catalyst was "less clear" as LFL sales growth could remain in the 3-5% range in 2024, as pricing moderates and group volume growth remains negative.

"For 2023, we forecast LFL sales growth of 4.4% (previously 5.0%) and an adjusted EBIT margin of 23.4% (unchanged). Our 2023 EPS forecast is broadly unchanged; however, for 2024E our EPS is 1% lower as we reflect some of the potential headwinds."

Reporting by Iain Gilbert at Sharecast.com

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Reckitt Benckiser Market Data

Currency UK Pounds
Share Price 4,407.00p
Change Today 14.00p
% Change 0.32 %
52 Week High 6,082.00
52 Week Low 4,110.00
Volume 1,062,390
Shares Issued 700.47m
Market Cap £30,870m

Reckitt Benckiser Star Ratings

Compare performance with the sector and the market.
more star ratings
Key: vs Market vs Sector
Value
23.67% below the market average23.67% below the market average23.67% below the market average23.67% below the market average23.67% below the market average
4.35% below the sector average4.35% below the sector average4.35% below the sector average4.35% below the sector average4.35% below the sector average
Price Trend
60.16% below the market average60.16% below the market average60.16% below the market average60.16% below the market average60.16% below the market average
44% below the sector average44% below the sector average44% below the sector average44% below the sector average44% below the sector average
Income
61.31% above the market average61.31% above the market average61.31% above the market average61.31% above the market average61.31% above the market average
76.47% above the sector average76.47% above the sector average76.47% above the sector average76.47% above the sector average76.47% above the sector average
Growth
36.52% above the market average36.52% above the market average36.52% above the market average36.52% above the market average36.52% above the market average
44.00% above the sector average44.00% above the sector average44.00% above the sector average44.00% above the sector average44.00% above the sector average

What The Brokers Say

Strong Buy 5
Buy 4
Neutral 8
Sell 0
Strong Sell 1
Total 18
buy
Broker recommendations should not be taken as investment advice, and are provided by the authorised brokers listed on this page.

Reckitt Benckiser Dividends

  Latest Previous
  Final Interim
Ex-Div 11-Apr-24 03-Aug-23
Paid 24-May-24 15-Sep-23
Amount 115.90p 76.60p

Trades for 17-Jun-2024

Time Volume / Share Price
16:54 311 @ 4,406.12p
16:54 19,659 @ 4,406.12p
16:50 185 @ 4,407.00p
16:35 1,979 @ 4,407.00p
16:35 326,457 @ 4,407.00p

Reckitt Benckiser Key Personnel

Chair Jeremy Darroch
CEO Kris Licht

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