A leading Wall Street bank has reiterated its bullish stance of Reckitt Benckiser Group PLC (LSE:RKT, FRA:3RB, ETR:3RB) ahead of the investor day next week.
JP Morgan recognised July’s interim results were disappointing but said there were two short-term potential catalysts that could lift the stock, which has languished over the last six weeks.
It pointed out that industry sales data is currently supportive of Reckitt hitting or even surpassing its like-for-like sales target.
At the same time, JPM expects “an incremental positive” from the consumer goods giant's strategic review, details of which may be relayed to the wider investing audience at an investor day on September 23.
In a note to clients, it said it would be looking out for “progress on the turnaround journey, the improved capabilities in areas such as innovation, supply chain, execution as well as detailing progress on specific business areas and on return on investments”.
Repeating its ‘overweight’ stance, the investment bank said Reckitt is worth £85 a share. The stock closed the session at £59.16, up 1.65%.