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Investing.com - Berenberg lowered its price target on Reckitt Benckiser (LON:RKT) (OTC:RBGLY) to GBP55.55 from GBP59.20 while maintaining a Hold rating on the stock.
The price target reduction comes as Berenberg adopts a sum-of-the-parts (SOTP) valuation approach for the consumer goods company, suggesting the stock is currently fairly valued at its August 6 closing price.
Berenberg’s balanced view on Reckitt is partly based on the expected emergence of a higher-growth business through the planned sale of Essential Home by December 31, 2025, which should reshape the company’s portfolio.
The research firm also cited solid growth prospects and attractive margins available from Core Reckitt businesses as positive factors in its assessment.
Berenberg noted that ongoing NEC litigation is expected to remain an overhang on the stock over the next 12 months, representing a continuing challenge for the company.
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