Reckitt Benckiser (AO) | Buy | Preview H1 results

研报英文原文证据摘录

Reckitt Benckiser (AO) | Buy | Preview H1 results

Reckitt Benckiser Buy | Target Price: 6000p

Company description Management

Reckitt Benckiser is a consumer goods company with a focus on Health and Kris Licht, CEO

Hygiene segments like analgesics, gastrointestinal health, sexual well-being, and Shannon Eisenhardt, CFO

dish-washing, and disinfectant, etc. Health represents around 50% of revenues Key shareholders

with the remainder coming from the home care and hygiene business. Its largest Free float 100.00%

brands are Dettol, Lysol, Finish and Durex, while the US, China, UK and India are Sunlife 5.60%

its largest markets. Blackrock 4.60%

Vanguard 4.00%

Investment case Valuation methodology

RB has been a turnaround case for nearly a decade. In 2024, the We use a DCF model with: 8% WACC, 10% COE, 2.5% LT growth,

new management announced a strategy that focusses the 25% LT EBIT margin.

business on the strongest brands and in 2025 we have seen a We compare RB to a group of relevant competitors.

step-up of the growth rate. Risks to our rating

The company has been sold its Homecare business in 2025 and A further derating of the shares in the event top-line momentum

is looking to exit the IFCN business too in 2026-27. Given remains subdued.

litigation issues this won't be easy, but if management Newsflow around the US IFCN litigation can impact the share

succeeds, this is a positive trigger for the investment case. price.

Over the medium term, we see RB as a consolidator in the Not being able to increase the growth rate of the business.

fragmented consumer health industry. As it has paid down debt,

the balance sheet offers flexibility, and t this point access capital

is deployed to SBBs

Catalysts

Stronger-than-expected LFL growth and margin improvement in

2026-27E.