Berenberg lowers target price on Reckitt, stays at 'hold'

(Sharecast News) - Analysts at Berenberg lowered their target price on consumer goods giant Reckitt from 5,442p to 5,179p on Monday, following the group's recent first quarter results. Berenberg said Reckitt's core first quarter performance "disappointed across all three regions", with several factors hindering performance - included changes to EU sanctions on Russia, which the company believes will persist throughout 2026; consumption softness from

the Middle East conflict, which it expects to weigh on growth in Q2; and Durex volume weakness in China resulting from the introduction of 13% VAT on condoms, as well as elevated promotional levels from competitors.

The German bank also highlighted that a weaker-than-expected cold and flu season weighed on performance, although management expects this headwind to abate from Q2 as it laps a reset baseline.

"Despite this, management reiterated its lfl growth guidance for FY26, anticipating a return to growth for Durex in China, positive momentum on innovations and continued strength in its non-seasonal North America business," said Berenberg, which reiterated its 'hold' rating due to limited near-term visibility on Reckitt's ability to navigate headwinds and deliver a "sustained acceleration" in top-line growth and margin expansion.

Berenberg said it had adjusted its numbers to reflect incremental top-line and margin headwinds highlighted in Reckitt's Q1 results and noted that its updated figures also reflected latest FX rates.





Reporting by Iain Gilbert at Sharecast.com