Reckitt Benckiser: Berenberg raises target price
(CercleFinance.com) - Berenberg analysts on Thursday raised their target price for the Reckitt Benckiser share after the consumer-goods company reported strong third-quarter results.
However, the beat-and-raise did not lift the share price, the broker pointed out, which provides a buy opportunity, it said.
"RB currently trades on a 12-month forward P/E (...) multiple of 22.8x, which represents a 17% discount to our household and personal care coverage," Berenberg wrote in a note to clients.
The broker added the stock is mispriced as RB's discount is higher than its five-year average discount of 11%, which fails to reflect encouraging signs of improved execution and its favourable positioning to increased health and hygiene awareness.
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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.
However, the beat-and-raise did not lift the share price, the broker pointed out, which provides a buy opportunity, it said.
"RB currently trades on a 12-month forward P/E (...) multiple of 22.8x, which represents a 17% discount to our household and personal care coverage," Berenberg wrote in a note to clients.
The broker added the stock is mispriced as RB's discount is higher than its five-year average discount of 11%, which fails to reflect encouraging signs of improved execution and its favourable positioning to increased health and hygiene awareness.
Copyright (c) 2020 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.