Reckitt Benckiser share price: Hargreaves Lansdown weighs in on update

Analysts reckon group should be able to recover from ‘self-inflicted’ problems

Reckitt Benckiser share price: Hargreaves Lansdown weighs in on update

Hargreaves Lansdown argues that Reckitt Benckiser (LON:RB) should be able to recover from a number of self-inflicted problems, Citywire reports. The comments came after the blue-chip consumer goods group updated investors on its performance yesterday, revealing that a manufacturing disruption had hurt its performance in the third quarter of the year.

Reckitt Benckiser’s share price tumbled following the results, giving up 4.51 percent to close at 6,313.00p. The shares weighed on the benchmark FTSE 100 index which ended trading cautiously higher, adding 0.14 percent to 7,035.85 points.

HL weighs in on results

Hargreaves Lansdown weighed in on Reckitt Benckiser’s results which showed that a problem at its baby milk plant had lost the group £70 million in sales, and followed a Korean sanitiser tragedy and a cyber-attack. Citywire quoted Steve Clayton, manager of the HL Select funds which have positions in the consumer goods group, as commenting that the latest issue was “clearly of Reckitt’s own making and the company will need to convince investors that they have fixed this and that there is nothing else on the horizon”.

He added that most of Reckitt’s difficulties in the quarter looked ‘self-inflicted,’ while customer demand was ‘solid enough’.

“The rest of the group looks to be performing to plan and the long-term attractions of the stock are strong,” Clayton concluded.

Other analysts on RB

JPMorgan Chase & Co, ,which rates Reckitt Benckiser as a ‘buy,’ set a price target of 9,000p on the shares today, while Royal Bank of Canada, which is bearish on the stock with a ‘sell’ rating, set a valuation of 5,100p. According to MarketBeat, the blue-chip consumer goods group currently has a consensus ‘hold’ rating and an average price target of 6,313.00p.

As of 07:02 GMT, Wednesday, 31 October, Reckitt Benckiser Group Plc share price is 7,359.50p.

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