Reckitt Benckiser Group Plc (£RKT) - A Valuation On 17th September 2021

This global consumer goods powerhouse stagnated for the last few years, but have shed the underperforming IFCN unit. Will this help them reinvigorate growth and stem margin pressure?

Summary

Reckitt is a global consumer goods powerhouse that has stagnated for the last few years thanks to an overpriced and under-performing foray into infant formula in China. The company has shed this business unit and is focused on growth and re-establishing margins. The global market is forecast to grow at a 2.9% CAGR, while their high-quality stable of brands will help defend market share. New products in the pipeline and entering new markets will also support growth. Moreover, as business and the cost structure normalises following the restructuring, margins will also normalise.

Market Price = £58.93
Estimated Value = £55.78
Monte-Carlo Price Percentile = 53%
Rating At Current Price = HOLD