Reckitt Upgrade: Binary Events Weigh, But The Switch Is Visible; Upgrade to Buy

研报英文原文证据摘录

Reckitt Upgrade: Binary Events Weigh, But The Switch Is Visible; Upgrade to Buy

UK | Food & HPC

Reckitt Benckiser EquityJulyResearch22, 2026

RATING | TARGET | ESTIMATE CHANGEReckitt Upgrade: Binary Events Weigh, But The

RATING BUY (HOLD)Switch Is Visible; Upgrade to Buy

PRICE 5,092.00p^

Sanctions on Russia Household products, regulatory intervention for China

5,900.00p (5,600.00p) |

Intimate Wellness & price warring in EU Homecare have triggered a RKT LN PRICE TARGET | % TO PT +16%

derate; 18x to 14.5x YTD. Strip out these mostly binary bruises & Core LFL 52W HIGH-LOW 6,523p - 4,421p

is humming, at ~5%. Improved clarity/catalysts are queued: a formal guide FLOAT (%) | ADV MM (USD) 87.0% | 102.70

reset, Aug litigation, perhaps a Nutrition exit. 2Q/FY26 consensus is now MARKET CAP £35.7B | $48.0B

less complacent, that leaves valuation more inclined to the upside. Upgrade TICKER RKT LN

to Buy, PT £59. ^Prior trading day's closing price unless otherwise

noted.

Why read this note? We think the market has overly discounted the challenges that have

presented themselves in early 2026. We show the largest portion of the headwinds on initial FY (Dec) CHANGE TO JEFe JEF vs CONS

FY26 expectations are one-off/external events, that have a 1-year transitory impact. We do 2026 2027 2026 2027

expect a guidance reset for FY26 this month, and see a headline risk re. a punitive damage REV +1% +1% NM NM

award in August. But we argue their realisation can be genuine clearing events. That could EPS +1% +2% +3% NM

focus investors on prospects for performance in FY27 (inc 4.5%+ LFL sales); in the context of

a stock derated by 20% YTD.

YTD narratives & est cuts have been punishing. The RKT LN move (-15% vs SXXP +8% Exhibit 1 - RKT: Next 12 months consensus

EPS expectations have fallen 9% YTD