Reckitt Benckiser Group PLC (LSE:RKT, XETRA:3RB) has received sharply contrasting verdicts from analysts, after RBC Capital Markets downgraded the shares while Deutsche Bank renewed its 'buy' rating, underlining the tension between near-term uncertainty and longer-term strategic appeal.
RBC cut its rating to 'sector perform' from 'outperform', trimming its price target to £62, as it incorporated the disposal of the Essential Home business, the forthcoming £1.6 billion special dividend and the related share consolidation into its forecasts.
The broker said there were still too many moving parts. Reckitt has not yet provided guidance on 2026 margins, and RBC now assumes a 50–60 basis point hit next year from stranded costs following the disposal.
It also continues to factor in a £2 billion global settlement related to US necrotising enterocolitis litigation linked to Mead Johnson, with a key bellwether case due in February likely to shape negotiations. On that basis, RBC argued the shares now look fairly valued relative to peers.
By contrast, Deutsche Bank renewed its bullish stance with a sum-of-the-parts price target of £70, describing Reckitt as “one of the last compounders left” in a difficult fast-moving consumer goods landscape.
Deutsche said the group offers a defensive earnings profile in the first half of 2026, with limited downside risk to pricing and guidance, and potential upside from innovation in over-the-counter health.
Beyond that, it pointed to growing strategic optionality later in the year if progress is made on resolving Mead Johnson’s litigation, which could unlock longer-term value.
In late morning trading, the shares were down 0.6% at 6,156p.