Update shared on 05 Nov 2025
Fair value Increased 3.60%Analysts have raised their price target for Reckitt Benckiser Group from £55.55 to £56.47, citing slight revisions to revenue growth and profit margin expectations, as well as updated fair value estimates.
Analyst Commentary
Recent street research shows a mixed but generally constructive outlook from analysts regarding Reckitt Benckiser Group. Analysts have revised price targets and maintained varying ratings as they assess the company's updated performance expectations and execution outlook.
Bullish Takeaways- Bullish analysts have modestly raised their price targets, reflecting confidence in Reckitt Benckiser's ability to deliver steady revenue growth and support fair value gains.
- Upward adjustments to profit margin expectations point to greater efficiency and operational discipline, suggesting the company is managing cost pressures effectively.
- Despite maintaining a Hold stance, analysts see incremental progress in the company's financial outlook, underpinned by consistent portfolio performance and stable demand in key segments.
- The maintenance of neutral or hold ratings together with price target increases indicates analyst belief in the stock's valuation relative to near-term growth and margin prospects.
- Bearish analysts remain cautious, with rating revisions generally avoiding upgrades, signaling hesitancy about the company's ability to outperform its peer group or the broader market in the near term.
- Price target increases have been marginal, implying subdued confidence in rapid earnings acceleration or transformative new growth drivers.
- There is concern that current valuation levels account for much of the anticipated improvement, limiting further upside unless there is sustained execution above expectations.
What's in the News
- Reckitt Benckiser Group has confirmed its earnings outlook for 2025, maintaining expectations for Group like-for-like net revenue growth between 3% and 4%. (Key Developments)
- Results from the Guaifenesin Assessment of Satisfaction for Patients (GASP) Study were announced, showing clinically meaningful reductions in cough and sputum severity with extended-release Mucinex in chronic bronchitis over 12 weeks. (Key Developments)
- The GASP Study found high patient adherence, with over 90% of participants following the prescribed treatment weekly. This signals strong feasibility for long-term adjunctive use in chronic respiratory disease management. (Key Developments)
- Clinicians are provided with new real-world evidence and a validated PRO-based framework (CASA-Q) to guide treatment decisions and measure improvements in chronic respiratory care. (Key Developments)
Valuation Changes
- Fair Value: Increased slightly from £60.33 to £62.50, reflecting updated analyst estimates.
- Discount Rate: Remained effectively unchanged at 6.82%.
- Revenue Growth: Decreased marginally, from 3.21% to 2.99%.
- Net Profit Margin: Declined slightly, moving from 17.11% to 16.84%.
- Future P/E: Rose from 18.37x to 19.46x, indicating a higher valuation multiple for projected earnings.
Disclaimer
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