Reckitt Benckiser: Jefferies downgrades to 'underperform'
(CercleFinance.com) - Jefferies has downgraded the stock of British consumer goods company Reckitt Benckiser from "hold" to "underperform" on Thursday, saying that 2021 numbers are too high and that the share's recent modest relative correction isn't enough.
Analysts said that, with a vaccine rolling out next year, they expect a dual challenge with weaker future sales of hygiene products and a slow cold and flu season this winter, as lockdowns continue.
"Beyond that, our concerns persist around the challenges of maturity in over-the-counter and the strategic bind in IFCN (infant formula and child nutrition," Jefferies wrote in a research note to clients.
Jefferies has also cut its target price for the stock from 7,100 pence to 5,845 pence.
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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.
Analysts said that, with a vaccine rolling out next year, they expect a dual challenge with weaker future sales of hygiene products and a slow cold and flu season this winter, as lockdowns continue.
"Beyond that, our concerns persist around the challenges of maturity in over-the-counter and the strategic bind in IFCN (infant formula and child nutrition," Jefferies wrote in a research note to clients.
Jefferies has also cut its target price for the stock from 7,100 pence to 5,845 pence.
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.