I'm LongbridgeAI, I can summarize articles.Jefferies analyst David Hayes raised Reckitt's price target to $6,100 and maintained a Buy rating. He cites strong underlying revenue growth exceeding 6% and diminishing litigation risks, particularly regarding NEC proceedings. Hayes believes the current valuation discounts these positive factors and anticipates a re-rating to at least 16.5x earnings as legal uncertainties resolve and operational performance aligns with guidance.
Analyst David Hayes of Jefferies maintained a Buy rating on Reckitt, boosting the price target to p6,100.00.
David Hayes has given his Buy rating due to a combination of factors that, in his view, are not fully reflected in Reckitt’s current valuation. He notes that underlying revenue growth in the latest quarter exceeded 6% once exceptional items are stripped out, yet the shares still trade at about 14.5x next-twelve-month earnings, a level he believes discounts too much risk.
He also argues that key sources of investor hesitation, notably the pending NEC litigation and doubts about achieving the company’s 4%+ core like-for-like growth target for FY26, are likely to fade in the near term. With legal uncertainties expected to move toward resolution and operational performance broadly tracking guidance, Hayes sees scope for a re-rating toward at least a 16.5x earnings multiple, supporting his upwardly revised price target of $6,100 and a Buy recommendation.
In another report released on August 20, Bernstein also maintained a Buy rating on the stock with a £75.00 price target.