Reckitt Benckiser is still getting good broker feedback after its well-received first-quarter numbers last week.
Credit Suisse said there was nothing in the numbers to dissuade bulls of the consumer healthcare group.
The broker has raised its 2022 and 2023EPS estimates by 2.5%, due to a combination of higher growth expectations, lower tax (FY22) and foreign exchange, with its price target raised to £78 (from £77).
“With materially higher investment levels, along with much-needed change throughout the organisation, we believe Reckitt is now in a position to grow LFL sales in the mid-single-digit range.
“If it does so consistently, we believe there is material share price appreciation ahead.”
Outperform is Credit Suisse's investment view.
Deutsche Bank says first-quarter like-for-like growth came in strongly at 5.6% (consensus: 1.5%, DB 2.3%) though the price/mix was +5.3% and volume +0.3%.
The bank has a price target of 7,200p.