Added to YB: 2024-04-03
Pitch date: 2024-03-31
RBGLY [bullish]
Reckitt Benckiser Group plc
+46.74%
current return
Author Info
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Company Info
Reckitt Benckiser Group plc manufactures and sells health, hygiene, and nutrition products in the United Kingdom and internationally.
Market Cap
GBP 39.7B
Pitch Price
GBP 40.89
Price Target
18.19 (-70%)
Dividend
3.50%
EV/EBITDA
13.22
P/E
32.43
EV/Sales
3.45
Sector
Household Products
Category
value
Hidden Value Gems Monthly Stock Idea Lab: Reckitt Benckiser Group plc
RBGLY: Leading FMCG facing temporary issues. Nutrition liability risk (£2-7B), high base effects post-COVID. Isolated accounting issues in Middle East. Despite challenges, still #1-2 brands in growing categories. 24.6% 10yr avg op margin. Trades at 33% discount to peers (11.5x fwd EV/EBIT). 60% 2yr return potential if normalized at 20x P/E. 7-8% base case return (4% div + 3-4% EPS growth). £7B liability & slower growth in bear case.
Read full article (6 min)