Reckitt Benckiser: Liberum says valuation is attractive.
(CercleFinance.com) - Liberum has maintained its "buy" rating on Reckitt Benckiser, although has cut its target price for the share from 8,700 pence to 8,000 pence, citing the recent acquisition of Mead Johnson and slower growth.
The investment bank said that the consumer goods group's third quarter proved challenging as the effects of the cyber-attack and an end-market slowdown continue to weigh on growth.
While the 2017 target of 0% like-for-like growth implies 2-4% in Q4, Reckitt Benckiser is on track for this result, Liberum adds in the report.
Analysts said they expect a slow growth acceleration in 2018 as Mead Johnson sales recover and Reckitt Benckiser's core business gains market share again.
"Profitability and cash flow generation remain intact and valuation is attractive," Liberum writes in the report.
Copyright (c) 2017 CercleFinance.com. All rights reserved.
The information and analyses distributed by Cercle Finance are only intended as decision-making support for investors. Cercle Finance's responsibility may not be entailed, either directly or indirectly following the use of such information and analyses by readers. Any non-professional investor is recommended to consult a professional advisor before making any investment decision. This indicative information in no way constitutes any invitation to sell or buy securities.
The investment bank said that the consumer goods group's third quarter proved challenging as the effects of the cyber-attack and an end-market slowdown continue to weigh on growth.
While the 2017 target of 0% like-for-like growth implies 2-4% in Q4, Reckitt Benckiser is on track for this result, Liberum adds in the report.
Analysts said they expect a slow growth acceleration in 2018 as Mead Johnson sales recover and Reckitt Benckiser's core business gains market share again.
"Profitability and cash flow generation remain intact and valuation is attractive," Liberum writes in the report.
Copyright (c) 2017 CercleFinance.com. All rights reserved.
The information and analyses distributed by Cercle Finance are only intended as decision-making support for investors. Cercle Finance's responsibility may not be entailed, either directly or indirectly following the use of such information and analyses by readers. Any non-professional investor is recommended to consult a professional advisor before making any investment decision. This indicative information in no way constitutes any invitation to sell or buy securities.