Reckitt Benckiser : shares outperform after broker upgrade
(CercleFinance.com) - Shares in UK consumer-goods company Reckitt Benckiser are outperforming the British stock market on Wednesday, after Credit Suisse upgraded the stock to "neutral" with a new target price of 5,900 pence.
At 9 AM (London time) the shares were resisting - down just 0.2% - while the FTSE 100 index was trading 1% lower.
In a note to clients, Credit Suisse said the sharp increase in demand for high gross-margin hygiene/health products should boost Reckitt's turnaround plan.
In this note focusing on the European consumer staples sector, the broker more broadly recommended investors to favour "value" over "quality" as P/E dispersion has increased further during the crisis.
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