Reckitt Benckiser is “cheap” compared to the sector and against its own history, according to Deutsch Bank, although it is “tough to re-rate.”
However, the broker believes it is “only moderately cheap against the market.”
“History shows that Reckitt re-rates when US hygiene volumes improve, however, in our view, it is difficult to re-rate the over-the-counter business until you get into the tougher cold & flu comps,” said Deutsche Bank analyst Tom Sykes.
The target price was cut to 6,200p from 6,250p.
Analyst at UBS echoed a similar tune, adding that the “all-time low valuation creates an attractive entry point.”
UBS was buoyed by the appointment of Kris Licht as CEO, who provided comments on his vision for the company which focused on earnings-per-share (EPS) growth after years of flat EPS.
UBS reiterated its Buy rating with a target price of 7,500p.