Reckitt Benckiser Shares Dip: RBC Capital Downgrades as Citi Resume at Buy

Reckitt Benckiser's shares (LON:RKT) dipped this morning following a downgrade from RBC Capital, and a resumption of coverage from Citi. The RKT share price decreased by 0.71%, settling at 6,146p, despite the mixed view on Wall Street.

The dip in share price follows RBC Capital's decision to lower its rating on Reckitt Benckiser from ‘Outperform' to ‘Sector Perform'. Simultaneously, the firm reduced its price target from 6,400 GBp to 6,200 GBp. This adjustment reflects RBC's valuation concerns in the wake of Reckitt's disposal of its Essential Home business.

The divestment of Essential Home, finalized at the end of December 2025, involved selling a majority stake to Advent International for a total consideration of up to $4.8 billion. Reckitt Benckiser retains a 30% equity interest in the divested entity. The Essential Home portfolio includes well-known brands like Air Wick, Calgon, and Cillit Bang. This strategic move is intended to streamline Reckitt's operations, allowing the company to concentrate on its high-growth, high-margin ‘Powerbrands'. As part of the transaction, Reckitt plans to return approximately $2.2 billion to shareholders through a special dividend, subject to shareholder approval.

Also coming through today was a resumption of coverage from Citi, putting in place a Buy rating, and bullish 7,000p price target. The firm see minimal downside risk to estimates, with shares on “the right defensive catalyst path”.

Today's mixed analysis for Reckitt has seen markets take a pause ahead of the next move. After a 26.55% gain over the past 12 months, the question now is whether momentum can be maintained in the year ahead.  While the divestment of Essential Home is strategically aligned with the company's long-term goals, valuation adjustments, execution risks, and legal uncertainties appear to be weighing on market sentiment, thus impacting the current share price.