Deutsche Bank has revised its price target for consumer goods company Reckitt, reducing it from 6,200 pence to 6,000 pence. The adjustment comes amidst a backdrop of investor impatience and the necessity for Reckitt to enhance its market presence, particularly in emerging markets. Despite the lowered target, Deutsche Bank continues to advise a 'hold' position on Reckitt's stock.
The bank acknowledged the historical low valuations of Reckitt's shares and recognized the company's strength within the hygiene sector. However, it also pointed out that Reckitt is facing significant challenges in its anti-influenza and nutrition divisions. These headwinds are part of the reason for the tempered outlook.
Deutsche Bank's latest assessment emphasizes that while Reckitt has made progress in its hygiene product category, there are still issues within its health segments that need addressing. The bank stresses that for Reckitt to realize sustained growth, it is critical to make a more robust push into fast-growing emerging markets. This strategic move is seen as vital for the company's future success as a global player in the fast-moving consumer goods industry.
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