Reckitt Benckiser Price Target Raises Fail To Keep Pace With Shares (RKT)

Reckitt Benckiser Group share price (LON:RKT) has been on an steady climb, adding 20% over the past 6 months to reach 6,054p. With highs of 6,120p coming during yesterday's session, upgraded price targets present some mixed signals. Analysts are revising higher, yet the share price continues to outpace the moves. This movement reflects market optimism following the completion of a significant divestment and renewed confidence in growth within key emerging markets.

The stock's trajectory has been notably positive, trading above the recent price target increases set by several investment firms. While Jefferies raised its target to 5,900p, maintaining a ‘Hold' rating, the stock has demonstrated upward momentum beyond this level.

This adjustment followed Reckitt's divestment of its Essential Home business, a move aimed at streamlining operations and focusing on higher-growth sectors. The firm cited increased confidence in mid-term volume and mix growth within emerging markets, particularly China, as a key driver for the revised target.

Reckitt Benckiser finalized the sale of its Essential Home business to Advent International for up to $4.8 billion at the end of December 2025, while retaining a 30% equity stake. This divestment aligns with the company's broader strategy to prioritize its ‘Powerbrands' within the consumer health and hygiene sectors. As part of this transaction, Reckitt plans to return approximately $2.2 billion to shareholders through a special dividend, contingent on shareholder approval.

Analyst sentiment surrounding Reckitt Benckiser has been mixed but generally optimistic.

RBC Capital Markets increased its price target to £57.00, retaining an ‘Outperform' rating, acknowledging potential cost duplications linked to the Essential Home and Mead Johnson Nutrition divestments, but expressing optimism about the company's operational changes. 

JPMorgan adopted a more bullish stance, raising its price target to 6,100 with a ‘Neutral' rating, highlighting the potential for higher growth post-divestment and solid prospects in Reckitt's core businesses.

Price Targets

The market's response to Reckitt Benckiser's strategic decisions has been largely positive, with the share price reflecting optimism. However, the path forward is not without potential headwinds.