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UBS has reversed its rating on the consumer goods group from “buy” to “sell” and cut its target to 4,550p from 5,210p. The broker thinks the company’s excess cash flow will be used for acquisitions and not paid out to investors. It also believes competition will squeeze Reckitt’s margins.
N+1 Singer maintains a “hold” recommendation of the animal genetics company but cuts the target price to 1,255p from 1,357p. The broker expects a slowdown in profits from the Asian markets, which is not offset by a good performance in other divisions.
Peel Hunt tells investors to “buy” the construction retailer and sets the target price at 1,860p following a growth plan outlined by management. The broker believes an improved effort in sales and updated branches will result in higher than average growth and push up margins.