Reckitt Digital Science Investor Seminar Feedback

研报英文原文证据摘录

Reckitt Digital Science Investor Seminar Feedback

Celine Pannuti, CFA AC Europe Equity Research

(44-20) 7134-7123 15 May 2026 C A Z E N O V E

celine.pannuti@jpmorgan.com

Investment Thesis, Valuation and Risks

Reckitt (Neutral; Price Target: 5,800p)

Investment Thesis

We rate Reckitt shares as Neutral given mixed Core Reckitt organic growth developments

(strong EMs but weaker DMs) while the exit of Essential Home comes with stranded costs

and dilution to EPS that may hold back the ability for the company to grow EPS in absolute

in 2026. We see limited scope for either a significant improvement in operational delivery

or re-rating (given that the stock does not screen as compellingly inexpensive vs peers on

EV/EBITDA 27E) to drive shares in the near term, leading to our Neutral rating. And whilst

the EH business has been exited, SOTP realisation is also contingent on visibility on Mead

Johnson value.

Valuation

We set a Dec-27 DCF-derived PT of £58.

Risks to Rating and Price Target

We believe the key downside risks that could keep our rating and target price from being

achieved include: continued growth disappointment, higher costs for the new organisational

structure, high raw material costs, worse than expected outcome for NEC liability cases and

a deterioration in trading conditions in Europe and the US, driven by weaker consumer

demand as well as heightened competition. Upside risks include: faster-than-expected

disposal of non-core assets (or interest in Core Reckitt in totality) as well as limited liability

in NEC cases for the Mead Johnson business. Upside risks for the core business include a

turnaround in market share performance led by volume growth with changes in organisation

leading to better-than-expected execution.