Reckitt Benckiser Group plc (LON:RKT) Stock: Barclays Upgrade, Q3 2025 Momentum and 2026 Forecasts

Published 1 December 2025 – informational only, not investment advice.

Reckitt Benckiser share price today: near a 52‑week high

Reckitt Benckiser Group plc, the FTSE 100 consumer goods group behind brands such as Dettol, Durex, Nurofen, Lysol and Finish, is ending 2025 in far better shape than it started. ^[1]

As of 1 December 2025, Reckitt’s London‑listed shares (ticker RKT) are trading at around 5,960p, according to live data from Investing.com. That leaves the stock only a few percentage points below its 52‑week high of 6,014p, set on 22 October 2025, and well above the year’s low of 4,579p hit in April. ^[2]

On Financial Times data, the current price implies roughly a 21–22% gain over the past 12 months and a beta of about 0.5, underlining Reckitt’s role as a relatively low‑volatility defensive stock in the UK market. ^[3] Market capitalisation sits just under £40 billion, with the U.S. ADRs (RBGLY/RBGPF) valuing the group at around $52 billion. ^[4]

Against that backdrop, fresh analyst upgrades, solid Q3 numbers and a major portfolio reshuffle are giving investors plenty to digest.

Barclays upgrade highlights an operational turnaround story

The headline development on 1 December 2025 is a new call from Barclays. The bank has upgraded Reckitt Benckiser (LON:RKT) from Equalweight to Overweight, lifting its price target from £63 to £70 per share. ^[5]

In its note, Barclays argues that:

Earlier operational issues – including under‑investment in manufacturing, supply chain and R&D that contributed to past crises – have largely been addressed under CEO Kris Licht. ^[6]
“Basic” supply‑chain resilience has been rebuilt while preserving Reckitt’s historically entrepreneurial culture, helped by greater capital spending and increased investment behind the brands. ^[7]
Stronger execution in China and India, along with broader emerging‑markets growth, now supports a slightly faster medium‑term revenue trajectory.

Barclays has nudged its Core Reckitt growth forecast for FY26–27 from about 4.4% to 4.7%, and assumes emerging‑markets growth nearer 8% per year, up from 7%. It also models operating margins 15–20 basis points above consensus by 2027, and has lifted earnings estimates by around 1.5–1.7% across 2025–27. ^[8]

The upgrade follows a strong share‑price run: Investing.com notes that Reckitt has delivered roughly 30–35% total return over the past year on the ADR line, which helps explain why Barclays believes improved operations now justify a more constructive stance despite an already solid re‑rating. ^[9]

Another broker, Bernstein SocGen, recently reiterated its Outperform rating with a £65 price target, highlighting nine consecutive quarters of double‑digit growth in China and rising market share in Chinese e‑commerce channels. ^[10]

Q3 2025: volume‑led growth and emerging‑market outperformance

The bullishness from the sell side leans heavily on Reckitt’s Q3 2025 results, published on 22 October.

Key points from the company’s trading update and RNS filing: ^[11]

Group like‑for‑like (LFL) net revenue grew 7.0% in Q3, taking year‑to‑date LFL growth to 3.3%.
Core Reckitt (the main health and hygiene operation) delivered 6.7% LFL growth in the quarter and 5.0% year‑to‑date.
Growth was volume‑led: at the group level, Q3 LFL growth was driven by about 4.2% volume and 2.8% price/mix. Core Reckitt saw around 3.4% volume growth and 3.3% price/mix.
Emerging Markets were the standout, with Q3 LFL net revenue up 15.5% (and 13.7% year‑to‑date), driven by strong performance in China and a balanced contribution from volume and pricing.
Europe returned to growth in Q3 with LFL up 0.8%, while North America managed 1.3% despite tough comparisons against pandemic‑boosted demand in 2024.
The Mead Johnson Nutrition unit, hit in 2024 by a tornado‑related disruption, rebounded to 22% LFL growth in Q3.
The soon‑to‑be‑divested Essential Home unit continued to lag, with Q3 LFL revenue down 4.9% (and 6.0% lower year‑to‑date).

Management left its FY 2025 guidance unchanged, expecting LFL net revenue growth above 4% in Core Reckitt and low‑to‑mid single‑digit LFL growth at Mead Johnson for the full year. ^[12]

The company also reiterated a medium‑term framework laid out in its March 2025 investment proposition: ^[13]

Group LFL net revenue growth of 2–4% per year,
Core Reckitt at 3–4% near term and 4–5% over the medium term,
Adjusted operating profit growing ahead of revenue, supported by a “Fuel for Growth” cost‑optimisation programme targeting 200–300 basis points of fixed‑cost savings over several years.

Taken together, Q3’s numbers suggested that not only pricing power, but volume momentum has returned across much of the portfolio, particularly in categories like Intimate Wellness and Germ Protection, where innovation in products such as Durex Intensity and expanded disinfectant ranges has driven both category growth and mix improvement. ^[14]

Portfolio reshaping: Essential Home sale and Mead Johnson review

Alongside operational improvements, Reckitt is executing a multiyear portfolio reshuffle designed to turn it into a more focused “world‑class consumer health and hygiene company.” ^[15]

In July 2025 the group agreed to sell a 70% stake in its Essential Home business to private‑equity firm Advent International in a deal valuing the unit at up to $4.8 billion (about £3.6 billion), including debt. Reckitt will retain a 30% minority stake. ^[16]

Essential Home includes cleaning and home‑care brands such as Air Wick, Cillit Bang, Calgon, Woolite and Mortein, spanning roughly 80 brands across 70 markets. The division generated around £2 billion of revenue and nearly £490 million of adjusted operating profit in 2024, representing about 13–14% of group sales. ^[17]

The transaction:

Follows a strategic review announced in 2024, when Reckitt said it would split reporting into three segments – Core Reckitt, Essential Home and Mead Johnson Nutrition – from 1 January 2025 and seek “maximum value” from the non‑core units. ^[18]
Comes after earlier attempts to sell the business reportedly attracted bids below management’s expectations, forcing the company to consider alternative structures. ^[19]
Is expected to complete by 31 December 2025, according to the Q3 trading update. ^[20]

Analyst reaction has been mixed. Some welcomed the move as a credibility boost for CEO Kris Licht’s portfolio strategy, while others highlighted that the sale price multiple was lower than hoped and that Reckitt is not fully exiting the category. ^[21]

The company is also reviewing strategic options for Mead Johnson, its infant‑formula unit, which has faced litigation and regulatory headwinds in the U.S. Shares Magazine and other outlets have flagged potential divestment or partnership scenarios, though management has not committed to a specific route or timetable. ^[22]

Capital returns: special dividend, buybacks and ordinary dividends

One major consequence of the Essential Home deal is a wave of capital returns.

Reckitt has said it plans to return about $2.2 billion of the proceeds to shareholders via a special dividend and a share consolidation once the sale closes. ^[23]

This comes on top of an existing £1 billion share buyback programme, announced in July 2025. The first £250 million tranche of this programme began on 28 July 2025 and was completed by 21 October 2025, with shares repurchased through RBC Europe and cancelled. ^[24]

Dividend‑wise, Reckitt remains a regular payer:

The board recommended an interim 2025 dividend of 84.4p per share, up from 80.4p a year earlier, with an ex‑dividend date of 7 August 2025 and payment on 18 September 2025. ^[25]
Various data providers put the trailing dividend yield on the London line in the 3–3.5% range, with buyback yield adding another 2–3%, giving a total shareholder yield of roughly 6% in 2025. ^[26]

For income‑focused investors, the combination of a rising ordinary dividend, a large buyback and a prospective special dividend is a central part of the bull case.

Analyst forecasts: “Moderate Buy” consensus and modest upside

Across the broader analyst community, sentiment toward Reckitt is cautiously positive.

MarketBeat data show a “Moderate Buy” consensus based on six recent ratings, split evenly between Buy and Hold. ^[27]
TipRanks, which tracks nine analysts over the past three months, also labels the shares a Moderate Buy, with 3 Buy and 6 Hold ratings and no Sell recommendations. The average 12‑month price target sits around 5,972p, only about 2% above the late‑November share price of 5,848p. The target range is wide, from 4,900p to 7,700p. ^[28]
Zacks’ average brokerage recommendation (ABR) score of roughly 2.2 on the ADR (RBGLY) – where 1 is “Strong Buy” and 5 is “Strong Sell” – also maps to a mild buy/overweight stance. ^[29]

Independent valuation models are even more divided:

A discounted cash flow (DCF) analysis on SimplyWall‑style platforms recently lifted its fair value estimate from about £60.33 to £62.50, implying the shares are roughly fairly valued or slightly undervalued versus the current price in the high‑50s. ^[30]
Another DCF model, using more aggressive assumptions, has suggested a fair value above £100 per share, implying a large potential discount – though such outputs are highly sensitive to growth and discount‑rate inputs. ^[31]
Conversely, at least one quantitative DCF service calculates an “intrinsic value” equivalent to around 4,300p, about 25–30% below the current market price, flagging potential overvaluation on its assumptions. ^[32]

In other words, valuation tools do not agree. Investors should treat any single fair‑value estimate as a scenario, not a fact.

Valuation: premium multiple backed by growth… or too rich?

Whatever the model, almost all services agree on one thing: Reckitt trades on a premium earnings multiple.

Most recent estimates put the trailing price‑to‑earnings (P/E) ratio on the London line around 30–32x, significantly above the UK market median (many domestic stocks trade on P/Es below 16x). ^[33]

Other metrics include:

A price‑to‑book ratio around 5x,
A price‑to‑sales ratio close to 2.4x, and
An enterprise value of about $63 billion, implying a sizeable EV/EBITDA multiple relative to peers in consumer staples. ^[34]

For bulls, this premium is justified by:

The strength and resilience of global “Powerbrands” (Dettol, Lysol, Durex, Nurofen, Finish, etc.),
High and slowly rising margins (FY24 adjusted operating margin improved and is targeted to move further ahead of revenue growth), and
A credible cost‑savings and simplification programme that aims to remove hundreds of basis points of fixed cost over several years. ^[35]

For bears, Reckitt’s P/E multiple looks exposed if:

Emerging‑markets growth slows,
The Essential Home sale or any potential Mead Johnson transaction fails to unlock the hoped‑for value, or
Legal and regulatory risks around infant formula and historical issues flare up again.

SimplyWall‑type commentary has already warned that a P/E north of 30x is “lofty” compared with the wider UK market and could be vulnerable if earnings disappoint. ^[36]

Ownership, sentiment and the “big money” view

Reckitt is overwhelmingly an institutionally owned company. Estimates suggest that around 80–85% of the share capital sits with institutional investors, including large active managers and index funds. ^[37]

High institutional ownership can cut both ways:

It can anchor the shareholder base and support governance and liquidity.
It can also amplify moves if several large holders decide to rotate out at the same time, particularly after a strong run in a defensive stock.

Past coverage has also noted interest from activist investors, though no major live activist campaign is in the headlines as of 1 December 2025. ^[38]

Key risks and what to watch in 2026

Looking beyond today’s Barclays upgrade, several catalysts and risk factors are likely to shape Reckitt’s share‑price narrative into 2026:

Closing and integration of the Essential Home deal
- Completion by year‑end 2025 is crucial, not just for strategic focus but also for unlocking the promised $2.2 billion special dividend and related share consolidation. ^[39]
Outcome of the Mead Johnson strategic review
- Any sale, demerger or partnership will be judged on valuation and on how far it de‑risks legal and regulatory exposure in infant nutrition. ^[40]
Delivery against volume‑led growth
- After several years where pricing did most of the work, investors will watch closely whether volume momentum in categories such as self‑care, germ protection and intimate wellness can be sustained, particularly in Europe and North America. ^[41]
Execution of the “Fuel for Growth” cost‑savings plan
- Hitting the targeted 200–300bps reduction in fixed costs as a percentage of net revenue is key to justifying a high‑20s or low‑30s P/E multiple. ^[42]
Consumer and macro backdrop
- As a staples business, Reckitt is relatively defensive, but it is not immune to currency movements, input‑cost inflation, or shifts in consumer spending power, particularly in emerging markets where growth has been strongest. ^[43]

Bottom line

As of 1 December 2025, Reckitt Benckiser Group plc stock sits close to its 52‑week high, backed by:

A fresh Overweight upgrade and higher £70 target from Barclays,
Strong Q3 2025 volume‑led growth, especially in emerging markets,
A major portfolio simplification via the Essential Home sale,
A combination of ordinary dividends, a £1bn buyback and a planned special dividend, and
A Moderate Buy consensus from analysts, albeit with only modest average upside from here. ^[44]

At the same time, the stock trades on a premium valuation and faces open questions around Mead Johnson, legal risks and the durability of current growth trends.

For investors following RKT or its U.S. ADRs (RBGLY/RBGPF), the next year is likely to hinge less on new strategic announcements and more on whether Reckitt can quietly deliver on the operational promises now embedded in that higher multiple.