Analyst Bullish on Reckitt Benckiser Shares Following Recent Decline

Reckitt Benckiser (LON: RKT) shares have come under pressure in recent weeks, falling more than 14% over the last month and leaving the stock down more than 8% year to date.

The shares closed Monday at 5,484p. But despite the slide, several analysts argue the recent weakness has opened up a more attractive entry point.

According to data from TradingView, 11 of the 19 analysts covering the stock carry Buy ratings, with the remaining eight at Hold. The average price target stands at 6,560p, implying potential upside of roughly 19.6% from Monday’s close.

This week, Morgan Stanley upgraded the shares to Overweight from Equal Weight. The bank trimmed its price target to 6,300p from 6,500p but said the current valuation does not fully reflect what it sees as resilient revenue trends and improving medium-term efficiencies.

Other brokers have been more cautious. In recent notes, Berenberg cut its target price to 5,479p while maintaining a Hold stance, while JPMorgan reduced its target to 5,800p and kept the shares at Neutral.

Earlier in the year, views were more mixed. RBC Capital lowered its rating to Sector Perform as it reassessed valuation following a business disposal.

In contrast, Citi reinstated coverage with a Buy rating and a 7,000p target, arguing the shares offer a solid defensive profile with limited downside risk.

The recent upgrade from Morgan Stanley adds to the view that sentiment toward the stock may now be stabilizing after the latest pullback.