02:53 AM EDT, 10/28/2026 (MT Newswires) -- RBC Capital Markets revised its earnings forecasts for Reckitt Benckiser Group (RKT.L) as part of a model update following the British consumer goods giant's third-quarter results. "Judging by our Adjusted Present Value model (the basis of our GBP62 price target), the shares appear undervalued. However, in view of the volatility of Reckitt's financial performance relative to investors' expectations - as evidenced by the Lysol production difficulties in Q3 - we stick with our Sector Perform rating," the research firm said Tuesday. For the third quarter, the company said its Core Reckitt business posted 3.3% like-for-like net revenue growth to 2.69 billion pounds sterling, supported by volume growth and a "strong" product mix. On an IFRS basis, group net revenue fell 6.9% to 3.36 billion pounds, primarily reflecting the inclusion of Essential Home in the prior-year period. Against this backdrop, analysts cut their revenue forecasts for full-year 2026 through 2028 as well as their dividend per share projections for 2027 and 2028. Meanwhile, RBC's diluted operating EPS estimate for 2026 was lifted, while its assumptions for the latter two years were trimmed. "We can't figure out if Reckitt is serially unlucky, if there is insufficient prudence and communication in its setting of expectations, or it is paying the price for many years of underinvestment ... maybe there's a bit of all three," the note said.

Disclaimer:This article represents the opinion of the author only. It does not represent the opinion of Webull, nor should it be viewed as an indication that Webull either agrees with or confirms the truthfulness or accuracy of the information. It should not be considered as investment advice from Webull or anyone else, nor should it be used as the basis of any investment decision.