Update shared on08 Oct 2025
Fair value Increased 0.98%Analysts have modestly increased their price target for Reckitt Benckiser Group, raising fair value by approximately £0.59 to £60.33. This change is due to slightly improved revenue growth expectations and continued sector stability.
Analyst Commentary
Recent analyst activity around Reckitt Benckiser Group highlights a mixture of optimism and caution regarding the company's valuation and growth trajectory. These adjustments reflect evolving sentiment on execution, sector performance, and future potential.
Bullish Takeaways- Bullish analysts have raised their price targets for Reckitt Benckiser, signaling increased confidence in the company's earnings outlook and long-term fundamentals.
- Recent upgrades cite improving revenue growth expectations, suggesting that the company’s strategy is starting to deliver stable top-line expansion.
- Market participants point to Reckitt Benckiser’s resilience within its sector, with stable demand and effective cost management contributing to a more favorable risk profile.
- The company’s ability to secure and maintain an Outperform rating from key institutions is viewed as validation of ongoing execution improvements.
- Bearish analysts have tempered their outlook by lowering price targets while retaining Hold ratings, noting persistent uncertainties in near-term performance.
- Some caution is linked to perceived headwinds in market share growth and competitive dynamics, which may limit upside potential in the short to medium term.
- Valuation sensitivities continue to weigh on recommendations, with concerns that the current price may already reflect much of the anticipated growth.
What's in the News
- The Board of Directors has authorized a new buyback plan, allowing Reckitt Benckiser Group to repurchase its own shares (Key Developments).
- The company announced a substantial share repurchase program, with up to £1,000 million worth of shares to be bought back and cancelled over the next year (Key Developments).
- An upgraded outlook for 2025 has been released. Core Reckitt is now targeting LFL net revenue growth above 4 percent, while the Group expects overall growth of 3 percent to 4 percent for the year (Key Developments).
- Reckitt Benckiser Group recommended an interim 2025 dividend of 84.4 pence, higher than the previous year. Payment is scheduled for September 2025 (Key Developments).
Valuation Changes
- Consensus Analyst Price Target has risen slightly from £59.74 to £60.33. This reflects a modest increase in fair value estimation.
- Discount Rate remains effectively unchanged at 6.82 percent, which indicates stable underlying risk assumptions.
- Revenue Growth expectations have increased modestly from 3.13 percent to 3.21 percent.
- Net Profit Margin shows a minor decrease, shifting from 17.12 percent to 17.11 percent.
- Future P/E ratio has increased from 17.22x to 18.37x. This suggests a higher valuation relative to anticipated earnings.
Disclaimer
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