Reckitt Benckiser: Jefferies maintains 'underperform' rating
(CercleFinance.com) - Jefferies maintains its "underperform" rating on Reckitt Benckiser, with a target price of 5,000 pence, after the British consumer goods maker's 2018 earnings beat consensus thanks to a lower-than-expected tax rate.
"These results look strong enough to support the shares and keep the bulls onside," the US broker wrote in a report.
However, RB guided for 3%-4% like-for-like growth for 2019, along with flat margins, a guidance that is in line with Jefferies expectations but which implies downside relative to the consensus, it warned.
The Reckitt Benckiser shares are currently down 1.4% at 6,202 pence in London.
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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.
"These results look strong enough to support the shares and keep the bulls onside," the US broker wrote in a report.
However, RB guided for 3%-4% like-for-like growth for 2019, along with flat margins, a guidance that is in line with Jefferies expectations but which implies downside relative to the consensus, it warned.
The Reckitt Benckiser shares are currently down 1.4% at 6,202 pence in London.
Copyright (c) 2019 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.