Reckitt Benckiser still faces headwinds to its ratings, according to Deutsche Bank, which cut its target price to 6,500p from 6,250p while maintaining its hold rating.
Analysts at the bank said uncertainty about the level of market share loss in the infant formula market to Abbott in the US and volatility in cough, cold and flu will “hold back the valuation.”
Ahead of the consumer goods’ first quarter results on 26 April, the broker edged like-for-like growth to 3% from 2.6% for the fiscal year 2023, with first-quarter growth forecast at 5.1%.
Additionally, Deutsche Bank kept the fiscal year 2024 like-for-like growth unchanged at 3.8%.