Reckitt Benckiser (LON:RKT) Stock Near 52‑Week High: Price, Forecast and NEC Risk Update

Reckitt Benckiser Group plc, the FTSE‑100 consumer health and hygiene giant behind Dettol, Durex, Lysol and Nurofen, is ending 2025 on the front foot. The shares are trading just below their recent 52‑week high after a strong third quarter, a major portfolio reshaping and a wave of analyst upgrades – even as U.S. infant‑formula litigation continues to hang over the story. ^[1]

Below is a detailed look at where the stock stands today, the latest forecasts and analyst views, and the key risks investors are watching as of 5 December 2025.

Share price today: close to record territory

On the London Stock Exchange, Reckitt’s ordinary shares (ticker RKT) were recently changing hands around 5,980p, leaving the stock only a fraction below its new 52‑week high of 6,016p, set on 2 December 2025. ^[2]

Over the past year, the shares have climbed from a 52‑week low of roughly 4,579p, a gain of more than 25%. ^[3] Reuters data around the latest Barclays upgrade shows the stock up roughly 23% year‑to‑date, underlining a clear rerating in 2025 after several tougher years for the company. ^[4]

A recent MarketWatch snapshot emphasised how close Reckitt now sits to its highs: on 1 December, the stock closed at £59.94, just 0.33% below the prior 52‑week peak. ^[5] Put simply, this is no longer a “fallen angel” recovery story – the market has already recognised much of the operational progress.

From a fundamental standpoint, UK broker Hargreaves Lansdown currently shows the shares trading on a price/earnings multiple around 17x with a dividend yield of about 3.4%, and a market capitalisation near £40 billion. ^[6] Other data providers using different earnings definitions put trailing P/E ratios higher, sometimes in the 30–32x range, highlighting how sensitive valuation is to methodology. TS2 Tech+1

Strategy reset: exiting Essential Home, focusing on “Powerbrands”

A major driver of sentiment in 2025 has been Reckitt’s decision to simplify its portfolio.

In July 2025, the group agreed to sell a majority stake in its Essential Home portfolio – the bulk of its home‑care brands – to private‑equity firm Advent International for an enterprise value of up to $4.8 billion. ^[7]

Key points from the deal:

Essential Home, which includes brands such as Air Wick and other household products, generated around £2 billion of revenue in 2024, roughly 13–14% of group sales, and several hundred million pounds of operating profit. ^[8]
Reckitt is retaining a 30% minority stake, but will deconsolidate the business once the transaction closes. ^[9]
Completion is expected by 31 December 2025, subject to regulatory approvals and final separation steps. ^[10]
The company has flagged an anticipated special dividend of about $2.2 billion (alongside a share consolidation) funded from the proceeds, on top of its ongoing share buyback programme. ^[11]

The sale is part of a multi‑year strategy to focus on 11 higher‑growth, higher‑margin “Powerbrands” in consumer health and hygiene – names like Dettol, Lysol, Durex, Finish, Vanish, Nurofen and Gaviscon – and to run a leaner operating model. ^[12]

For shareholders, the Essential Home exit does two things at once: it simplifies the equity story around “Core Reckitt” and unlocks a large capital return, but it also removes a stable, cash‑generative business that used to provide diversification. How investors judge the trade‑off will depend heavily on what the remaining core can deliver.

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

The most recent quarterly numbers have underpinned the share price rally.

For the third quarter of 2025, Reckitt reported:

Group like‑for‑like (LFL) net revenue up 7%, ahead of company‑compiled consensus of 6.4%. ^[13]
Core Reckitt LFL revenue up 6.7%, driven by both increased volumes and pricing. ^[14]
Emerging‑markets core business up 15.5% on a like‑for‑like basis, accounting for about 42% of core net revenues in the quarter. ^[15]
A healthy mix of volume growth (~4.2%) and price/mix (~2.8%), indicating that growth is not solely inflation‑driven. ^[16]

Management maintained full‑year 2025 guidance for group LFL revenue growth of 3–4%, and above 4% for Core Reckitt, with low‑to‑mid single‑digit growth expected at infant‑nutrition arm Mead Johnson and a mid‑single‑digit decline at Essential Home as it runs off ahead of divestment. ^[17]

The “Fuel for Growth” cost‑saving programme, launched earlier and expanded in 2025, is expected to drive adjusted operating profit growth ahead of net revenue, by cutting 200–300 basis points of fixed costs over several years while sustaining investment in brands and innovation. ^[18]

In a sector where many peers are grappling with sluggish volumes and pressure from private‑label competitors, the combination of volume growth and margin ambition has gone down well with analysts. ^[19]

Emerging markets investor day: fresh colour from management

The emerging‑market story was front and centre again this week.

On 4 December 2025, Reckitt hosted its third “Reckitt Focus On” investor education event in London, dedicated to Emerging Markets. CEO Kris Licht, President of Emerging Markets Nitish Kapoor and other senior executives walked investors through the company’s footprint in China, India, Latin America and other high‑growth regions. ^[20]

Recent Reuters coverage of the Q3 results and China specifically highlighted that:

Emerging markets now generate roughly 42% of Core Reckitt net revenues. ^[21]
China remains a key engine, with health‑engaged consumers driving strong demand for brands such as Dettol, Durex and Veet, and with e‑commerce and livestreaming playing an outsized role in distribution. ^[22]

The take‑away from the emerging‑markets event and transcript is that management sees a long runway in these regions, with room to both expand penetration (for example, Durex penetration has reportedly more than doubled from 2% in 2020 to around 5% by 2025 in some EM markets) and premiumise product offerings. ^[23]

For a company that used to be criticised for under‑delivering versus global giants like P&G and Unilever, this emerging‑market narrative is an important part of the rerating.

Analyst sentiment and price targets: cautiously positive

Recent weeks have brought a fresh wave of analyst activity.

Consensus view: “Moderate Buy” with modest upside

According to MarketBeat’s compilation of six recent analyst ratings on the London‑listed shares, Reckitt carries a consensus rating of “Moderate Buy”, with three Buy and three Hold recommendations. The average 12‑month price target is about 6,109p, implying roughly 3–4% upside from a current reference price of 5,906p. ^[24]

Data compiled by Fintel using a broader analyst set suggests an average one‑year price target of around 6,357p, with estimates ranging from roughly 4,949p to 8,085p. ^[25] That spread underlines how differently analysts view the risk/reward after this year’s rally.

Upgrades from Barclays and others

The past fortnight has seen several supportive broker moves:

Barclays upgraded Reckitt from Equal Weight to Overweight, raising its price target from £63 to £70. Coverage from Investing.com and Reuters notes that the bank cited improved operations, strong emerging‑market momentum and confidence in the sustainability of Core Reckitt’s roughly 60% gross margin profile, with the stock trading near record levels at the time of the call. ^[26]
Bernstein recently reiterated a Buy rating with a 6,500p target, nudging up its 2025 and 2026 EPS forecasts following the Q3 beat and emphasising emerging‑market growth as a key driver. ^[27]
Other houses, including Royal Bank of Canada, have maintained Outperform or equivalent ratings, pointing to improved execution and mid‑term growth prospects in Core Reckitt despite the litigation overhang. ^[28]

On the U.S. over‑the‑counter line (RBGPF / RBGLY), a recent Fintel summary highlighted an average ADR price target of about $82 per share, implying over 40% upside from a reference price near $56, although currency effects and the ADR ratio complicate direct comparison with the London line. ^[29]

The bottom line from the sell‑side is broadly consistent: sentiment has improved materially versus 2023–24, but consensus upside from here is modest rather than explosive, especially given how far the shares have already run.

Valuation: premium multiples and split fair‑value models

How expensive is Reckitt now? The answer depends heavily on which numbers you focus on.

Hargreaves Lansdown pegs the stock at around 17x earnings with a 3.4% dividend yield. ^[30]
CompaniesMarketCap data points to a price‑to‑book ratio around 2.8x based on recent financials, broadly in line with other global branded consumer staples. ^[31]
Some quantitative and DCF‑style models are far more divided. A widely followed fair‑value model (referenced in Yahoo‑linked analysis and summarised by TS2 Tech) recently nudged its estimate from £60.33 to £62.50, suggesting the shares are around fairly valued or slightly undervalued in the high‑50s to low‑60s. By contrast, another model pegs “intrinsic value” closer to 4,300–4,600p, implying downside from current levels. ^[32]

In practice, investors are paying a clear quality premium for Reckitt’s portfolio of global brands, its relatively defensive earnings profile and its improving growth algorithm. Whether that premium is justified will depend on the company’s ability to keep delivering volume‑led growth and margin expansion – and on how the litigation story plays out.

Dividends, buybacks and the coming special payout

Reckitt has long been seen as a “quality income” name in the UK market, and the capital‑return story has become more generous in 2025.

The ordinary dividend currently offers a yield in the 3–3.5% range on the London listing, with a track record of steady growth over time. ^[33]
The group is running a share buyback programme of around £1 billion, effectively adding a few percentage points of “buyback yield” and supporting earnings per share. TS2 Tech+1
Once the Essential Home sale closes, management has guided to a special dividend of approximately $2.2 billion (with a share consolidation to keep the per‑share price in a similar range), in addition to the regular dividend and buybacks. ^[34]

Taken together, the near‑term total‑return profile – regular dividend, buybacks and a one‑off capital return – is one of the core attractions of the stock for income‑oriented holders, especially at a time when many UK companies are more cautious on distributions.

NEC infant formula litigation: the main overhang

Set against the attractive growth and capital‑return story is a large, slow‑moving source of risk: U.S. litigation related to Mead Johnson’s preterm infant formulas.

Hundreds of lawsuits in U.S. federal and state courts allege that cow’s‑milk‑based formulas such as Enfamil increased the risk of necrotising enterocolitis (NEC), a serious and sometimes fatal intestinal disease in premature infants, and that manufacturers including Mead Johnson and Abbott failed to provide adequate warnings. ^[35]

Key legal context as of late 2025:

A federal multidistrict litigation (MDL 3026) in the Northern District of Illinois counted 774 active cases as of December 2025, according to legal resource Drugwatch. ^[36]
Earlier state‑court trials in 2024 produced very large verdicts – including a $60 million Illinois award and a $495 million Missouri verdict – raising the stakes for all manufacturers involved, even though not all verdicts targeted Mead Johnson directly. ^[37]
In March 2025, a U.S. appeals court allowed plaintiffs to seek a new trial in a case where Reckitt’s Mead Johnson unit and Abbott had previously been found not liable, sending both companies’ shares down on the day. ^[38]

Reckitt disputes the allegations and continues to defend its position, pointing to what it describes as the importance of specialised formulas for vulnerable preterm infants and linking to dedicated litigation information from its U.S. corporate site. ^[39]

For investors, the key unknowns are:

The ultimate size and timing of any settlement or adverse judgments;
How that might interact with the planned strategic options for Mead Johnson (sale, spin‑off or restructuring); and
Whether litigation costs could crowd out future capital returns once the Essential Home proceeds have been distributed. TS2 Tech+2Drugwatch.com+2

Some broker models – for example, estimates referenced in TS2 Tech’s December review – now assume NEC‑related costs in the low hundreds of millions of dollars, but there is huge uncertainty around these figures and no market‑wide consensus. TS2 Tech+2Investing.com+2

Ownership and market profile: tightly held by institutions

Reckitt’s shareholder base is dominated by large professional investors. Analysis from Simply Wall St indicates that:

Institutions hold roughly 86% of the shares;
The top 25 shareholders own about 50% of the company;
Insider ownership is under 1%, with board members collectively holding around £5 million of stock;
The general public (mostly retail investors) own about 13%. ^[40]

This concentrated institutional ownership can amplify moves in both directions: positive news and upgrades can spark strong rallies, but any coordinated de‑risking by big holders can also make the stock more volatile around bad headlines.

Key catalysts to watch into 2026

Looking beyond the December headlines, several events and trends are likely to shape the next leg of the Reckitt story: Reuters+4TS2 Tech+4Reckitt+4

Closing the Essential Home deal on time
Completion by 31 December 2025 is crucial to unlock the promised special dividend and cement the strategic shift toward a pure health and hygiene focus.
Strategic outcome for Mead Johnson
Investors are watching closely for any decision to sell, spin off or reshape the infant‑nutrition unit – and what valuation and risk‑sharing structure such a deal might entail.
Execution of Fuel for Growth
The market is assuming that fixed‑cost savings of 200–300 basis points are achievable over the next few years. Persistent slippage on these targets could undermine the premium multiple.
Sustaining volume‑driven growth in Core Reckitt
Q3 showed the company can grow both volumes and price again. The question for 2026 is whether categories like OTC self‑care, germ protection and intimate wellness can continue to deliver mid‑single‑digit to double‑digit growth, particularly in emerging markets.
NEC litigation developments
Any major verdicts, settlements or regulatory actions – positive or negative – will likely move the shares, given the scale of potential liabilities and the visibility of the issue in U.S. media.
Macro and FX environment
As a global staples business with significant emerging‑market exposure, Reckitt is sensitive to currency swings, consumer spending trends and input‑cost inflation, even if its brands offer some pricing power.

Bottom line: high‑quality defensive with less obvious upside

As of 5 December 2025, Reckitt Benckiser looks like a re‑rated quality compounder rather than a classic turnaround. The shares sit near record highs, underpinned by:

Strong recent execution in Core Reckitt and especially emerging markets;
A major portfolio simplification via the Essential Home divestment;
A rich capital‑return package, combining ordinary dividends, buybacks and a large special payout;
A broadly supportive analyst backdrop, with Outperform/Buy ratings from several major brokers and consensus targets only slightly above current levels.

Set against that are two main caveats. First, valuation is now clearly premium, with limited consensus upside unless the company can beat its current growth and margin ambitions. Second, the NEC infant‑formula litigation remains a material, difficult‑to‑quantify overhang that could still surprise the market in either direction.

For investors and readers tracking RKT into 2026, the story from here is less about dramatic new announcements and more about whether Reckitt can quietly do the hard thing consumer‑staples champions are supposed to do: deliver steady, volume‑led, high‑margin growth while navigating legal and macro headwinds.