Reckitt Benckiser (LON:RKT) Stock on 2 December 2025: Barclays Upgrade, Buybacks and 2026 Forecasts

Reckitt Benckiser Group plc (LON:RKT), the FTSE 100 maker of Dettol, Durex and Lysol, is back in the spotlight on 2 December 2025 thanks to a powerful mix of share buybacks, an upbeat third‑quarter update and a fresh upgrade from Barclays that pushes its price target up to £70. ^[1]

As of the latest close on Monday, 1 December 2025, Reckitt shares finished at 5,994p, up 2.43% on the day, having traded between 5,852p and 5,998p. ^[2] Real‑time feeds early on Tuesday suggested the stock was hovering around the 6,000p mark, very close to all‑time highs for this cycle. ^[3]

Below is a deep dive into the latest news, analyst forecasts and technical signals around Reckitt Benckiser stock as of 2 December 2025.

1. Today’s headline: more buybacks and a tighter share count

Daily share repurchases on 2 December 2025

Before the market opened on Tuesday, Reckitt released a “Transaction in Own Shares” RNS confirming that it bought back 58,600 shares on 1 December 2025. ^[4]

Key details:

Volume: 58,600 ordinary shares
VWAP: 5,967.49p per share
Price range: 5,898p (low) to 5,992p (high)
Post‑transaction treasury shares: 59,000,957
Total voting rights after the buyback: 673,088,382

A separate “Total Voting Rights” announcement published on 1 December confirmed that, as of 28 November, Reckitt had 732,089,339 ordinary shares issued and 58,822,847 held in treasury, leaving 673,266,492 voting shares. ^[5] The 1 December buyback nudges that free‑float number down again, marginally increasing earnings per share over time.

In plain English: management is continuously hoovering up stock in the market and parking it in treasury. That mechanically boosts per‑share metrics and sends a fairly loud signal that the board believes the shares are worth at least today’s price.

Part of a £1 billion buyback programme

The buybacks are not a one‑off stunt. In the Q3 2025 trading update, Reckitt confirmed that it had launched a £1 billion share buyback programme, with the first £250 million tranche already completed by 21 October 2025. ^[6]

Ongoing daily repurchases through November and into December, documented in RNS filings almost every trading day, show that the second tranche is now in full swing. ^[7]

For long‑term shareholders, this means:

A structurally lower share count over time
A floor of incremental demand for the stock
A bit of a “tailwind” to earnings per share growth, on top of whatever the business delivers operationally

2. Q3 2025 results: emerging markets doing the heavy lifting

Solid top‑line beat and guidance maintained

Reckitt’s Q3 2025 results (released 22 October 2025) showed the turnaround story is progressing: ^[8]

Group like‑for‑like (LFL) net revenue: +7.0% in Q3 to £3.61bn
Core Reckitt LFL revenue: +6.7% in Q3; +5.0% year‑to‑date
Emerging Markets LFL revenue: +15.5% in Q3, +13.7% YTD
Europe LFL: +0.8% in Q3 (return to growth)
North America LFL: +1.3% in Q3 (also back to growth)

Management maintained its full‑year 2025 guidance:

Core Reckitt: LFL revenue growth above 4%
Group: LFL revenue growth +3% to +4%
Expectation of another year of adjusted diluted EPS growth, with operating profit growing faster than revenue thanks to cost savings and productivity improvements. ^[9]

Reuters summed it up neatly: Q3 sales growth of 7% beat company‑compiled forecasts of 6.4%, driven by emerging markets, while developed markets remained more subdued but were no longer actively dragging the group backwards. ^[10]

Strategic reshaping: Essential Home sold, Mead Johnson next

Reckitt is in the middle of a simplification and “shrink to grow” strategy:

In July 2025, it sold a majority stake in its Essential Home (Air Wick, Cillit Bang etc.) business to Advent International in a deal valued at $4.8 billion including debt. ^[11]
Essential Home has been underperforming and is treated as non‑core in the group’s reporting. The Q3 update reiterated that the divestment is expected to complete by 31 December 2025. ^[12]
Reckitt is also exploring options to exit Mead Johnson Nutrition, the infant formula unit that has been at the centre of U.S. NEC (necrotising enterocolitis) litigation. ^[13]

The idea is to emerge as a leaner “Core Reckitt”, focused on 11 “Powerbrands” in health and hygiene, with structurally higher growth and better margins.

3. Barclays upgrade: new £70 target and a vote of confidence

The big broker news for 2 December’s coverage actually landed on 1 December 2025: Barclays upgraded Reckitt from “Equal Weight” to “Overweight” and raised its price target from £63.00 to £70.00. ^[14]

Highlights from the Barclays note (as reported by Investing.com):

Reckitt is now seen as a “smaller but higher‑growth” business post portfolio reshaping.
Barclays forecasts 4–5% organic growth for the group, primarily driven by emerging markets. ^[15]
The bank upgraded its Core Reckitt growth forecast for FY26–27 from 4.4% to 4.7%, and lifted medium‑term emerging markets growth expectations from 7% to 8%. ^[16]
Earnings forecasts rose by ~1.5% for FY25 and ~1.7% for FY26–27, putting Barclays slightly ahead of consensus. ^[17]
The analysts also model higher margins than the Street: about 15 basis points above consensus in 2026 and 20 bps in 2027, helped by fixed‑cost reductions and operating leverage. ^[18]

Emerging markets and China in particular

Barclays puts a big red circle around emerging markets:

EM currently accounts for around 41–42% of Core Reckitt sales. ^[19]
In Q3 2025, EM grew 15.5% like‑for‑like, with a balanced split between volume (+7.4%) and price/mix (+8.1%). ^[20]
China has overtaken India as the largest EM contribution, growing more than 30% in Q3 and on track for over 20% growth in 2025, with about 80% of sales via e‑commerce. ^[21]
India, about 8% of group sales, has delivered high‑single‑digit growth over five years, supported by shelf space in over a million outlets. ^[22]

Barclays also credits CEO Kris Licht for repairing operational fundamentals, investing more heavily in brands, R&D and capex, and driving fixed‑cost reductions:

Brand investment as a % of sales has risen from 11.8% (2022) to 13.4% (2024) and 14.6% in 1H25. ^[23]
R&D spend increased from 2.0% of sales (2020) to 2.3% in 2024.
Capex ramped from £154m in 2015 to £370m in 2024. ^[24]
Fixed costs are targeted to fall by 300 bps by 2027, already down from 22% of sales in 2023 to 21% in 2025. ^[25]

Litigation estimate cut in half

The most eye‑catching line for risk‑averse investors: Barclays halved its estimate of post‑tax NEC litigation costs from $750m to $375m, citing favourable rulings and dismissal of three bellwether trials. ^[26]

The broker’s base case assumes a sale of Mead Johnson in 2H26 or 2027 for £4–6bn (8–11.5x EV/EBITDA), with modest EPS dilution from losing the business, partially offset by better group margins and capital redeployment opportunities. ^[27]

4. Analyst consensus: still room above 6,000p

Barclays is not alone in its optimism; several data aggregators point to a consensus “buy” stance.

ValueInvesting.io: 26‑analyst “BUY” with ~6% upside

According to ValueInvesting.io:

Average 12‑month price target:£63.57
Target range: £49.49 to £80.85
This implies ~6% upside from the latest price of 5,994p. ^[28]
Consensus rating: “BUY” from 26 analysts (0 sell, 9 hold, 12 buy, 5 strong buy). ^[29]

The site’s fundamental forecasts also point to steady growth:

2025 revenue: £14.63bn, up 3.27% year‑on‑year
2026 revenue: £15.02bn (+2.65%)
2025 EPS: 3.53 (up 66.9% vs 2024, flattered by one‑offs and normalisation)
2026 EPS: 3.75 (+6.0%) ^[30]

TradingView: buy rating and ~6,270p average target

TradingView’s analyst page for RKT summarises:

Average price target:6,269.8p
Range: 4,900p (low) to 7,700p (high)
Analyst count: 17 in the last three months
Overall rating:“Buy”. ^[31]

MarketScreener and MarketBeat: Outperform / Moderate Buy

MarketScreener’s consensus dashboard shows: ^[32]

Mean consensus:“OUTPERFORM”
Number of analysts: 16
Last close: £59.94
Average target price: £63.15
Implied upside: about 5.4%

MarketBeat, using a smaller sample, lists a “Moderate Buy” rating based on six analyst opinions, again skewing towards buys over holds and no outright sells. ^[33]

Bottom line: whether you look at 16, 17 or 26 analysts, the average target clusters in the £63–64 range, a little above today’s ~£60 price, with Barclays now more bullish at £70.

5. Technical picture: gentle uptrend, low volatility, “Golden Star” signal

For short‑term traders who care less about infant formula lawsuits and more about the next few months, the technical picture is fairly constructive.

StockInvest.us: “Buy candidate” with ~5% 3‑month upside

Technical research site StockInvest.us currently classifies RKT.L as a “Buy”: ^[34]

Last close: £5,994, up 2.43% on Monday 1 December 2025
The stock has gained 1.73% over the last two weeks.
It sits in the middle of a weak rising trend, with the model projecting a 4.86% rise over the next three months, with a 90% probability that the price ends that period between £5,981 and £6,365.
There is support around £5,900 from accumulated volume; dips towards that level are seen as potential buying opportunities.
The site notes a rare “Golden Star” signal triggered back in July 2025, where short‑ and long‑term moving averages and the price aligned in a pattern often associated (in their back‑tests) with strong multi‑month gains. ^[35]

Daily volatility is modest – about 1.4% on average over the last week – which fits Reckitt’s role as a “defensive compounder” rather than a meme‑stock rollercoaster. ^[36]

MarketScreener: short‑term trade idea with 5.5% upside

MarketScreener’s editorial team has also flagged Reckitt as a short‑term trading idea: ^[37]

Entry price: 5,974p
Target: 6,300p
Suggested stop‑loss: 5,700p
Implied upside: +5.46%

They highlight:

Strengths: high EBITDA margins, attractive dividend credentials, and upward revisions to analysts’ price targets and estimates over the past 12 months.
Weaknesses: rich valuation relative to tangible assets and a history of earnings releases frequently missing expectations.

In other words: the chart is friendly, but the market already knows Reckitt is good – you’re not the only one at this party.

6. Fundamentals in focus: growth, margins and dividends

Powerbrands and category innovation

Reckitt’s strategy under Kris Licht is to double down on a set of “Powerbrands” – think Durex, Dettol, Mucinex, Lysol – and treat everything else as either support act or non‑core. ^[38]

Recent growth has been driven by:

Self Care (e.g. Mucinex Rapid+Clear and children’s “Mighty Chews” medicines)
Intimate Wellness (Durex Intensity and upgraded condoms and lubricants in China)
Germ Protection (Dettol innovations, including more premium segments) ^[39]

The Q3 update breaks down a compelling algorithm for Core Reckitt:

Volume +3.4%
Price/mix +3.3%
LFL revenue +6.7%

That mix matters. A business growing purely on pricing in an inflation spike is fragile; one with volume growth and pricing power usually has durable brand equity.

Margins, costs and capex

Reckitt is leaning heavily into efficiency programmes:

The Fuel for Growth programme is expected to keep adjusted operating profit growing faster than net revenue, even as the group ramps up brand investment and capex. ^[40]
Fixed‑cost savings of about 300 bps by 2027 are targeted; the group has already taken 100 bps out between 2023 and 2025. ^[41]
Capital expenditure is guided at 3–4% of net revenue for 2025. ^[42]

MarketScreener describes Reckitt’s EBITDA margin as relatively high versus peers and singles out the stock as appealing for dividend investors. ^[43] Without quoting an exact yield, it’s fair to say the dividend is a meaningful component of total return, especially when combined with the ongoing buyback.

7. Legal and regulatory overhang: NEC baby formula litigation

The main cloud over the story remains U.S. litigation involving Mead Johnson’s infant formula products.

NEC lawsuits and MDL status

Reckitt’s subsidiary Mead Johnson faces hundreds of lawsuits alleging that cow’s‑milk formula for premature babies increased the risk of necrotising enterocolitis (NEC) and that the company failed to provide adequate warnings. ^[44]

Key points from legal trackers and Reuters:

A U.S. federal judge in May 2025 ruled that expert testimony asserting that certain Abbott and Mead Johnson formulas can cause NEC may be presented to juries, a significant procedural win for plaintiffs. ^[45]
A multi‑district litigation (MDL 3026) in the Northern District of Illinois had 755 cases pending as of November 2025, according to Drugwatch. ^[46]
Earlier state‑court trials produced large verdicts against manufacturers in 2024, raising the stakes for settlement negotiations. ^[47]

Barclays’ decision to halve its NEC litigation provision estimate to $375m reflects the impact of dismissed bellwether trials and some favourable rulings, but the ultimate bill remains uncertain. ^[48]

For equity holders the key questions are:

How big is the eventual settlement bill?
Does it meaningfully change the economics of a future Mead Johnson disposal?
Does it cap Reckitt’s ability to keep buying back shares and raising the dividend?

Right now, the market appears to treat NEC as a manageable – but non‑trivial – risk, partially offset by the strategic plan to exit Mead Johnson entirely.

8. Valuation, upside and key risks

At roughly £60 per share, Reckitt trades just below the average of current broker price targets (around £63–64) and meaningfully below Barclays’ new £70 bull‑case. ^[49]

Arguments the bulls are using

Supportive points from recent research and news:

Defensive growth profile: mid‑single‑digit organic growth guided, with emerging markets doing the heavy lifting. ^[50]
Margin expansion: cost‑cutting and mix shift towards higher‑margin Powerbrands. ^[51]
Capital returns: a large, active buyback alongside a solid dividend. ^[52]
ESG credentials: an above‑average ESG score in its sector, which matters for many institutional investors. ^[53]
Improving sentiment: analysts have been revising price targets and earnings estimates upwards over the last year, and the stock has regained “quality compounder” status in several model portfolios. ^[54]

The bear case and risk checklist

On the other side of the ledger:

Litigation risk: NEC lawsuits remain a swing factor despite Barclays’ optimism. A handful of adverse verdicts could change settlement dynamics. ^[55]
Execution risk on disposals: selling Mead Johnson at the lower end of the £4–6bn valuation range – or later than expected – would blunt the strategic clean‑up narrative. ^[56]
Developed‑market softness: North America and Europe are stabilising but still show sluggish category growth; any consumer downturn or intensified private‑label competition could keep volumes under pressure. ^[57]
Valuation stretch: MarketScreener notes that the stock screens expensive versus tangible assets, and there’s a history of results that sometimes fail to meet consensus expectations – never ideal when a stock has re‑rated higher. ^[58]

9. What 2 December 2025 means for Reckitt investors

Putting it all together, the picture on 2 December 2025 looks like this:

Momentum is positive. The share price is sitting near cycle highs, supported by strong Q3 numbers, a raised 2025 outlook earlier in the year and accelerating emerging‑market growth. ^[59]
Sell‑side sentiment has shifted. Barclays has flipped to “overweight” with a punchy £70 target, and most other houses cluster in the low‑60s with buy/outperform ratings. ^[60]
Technical signals are friendly. Short‑term systems flag RKT as a low‑risk buy in a gentle uptrend, with 3‑month upside of around 5% in the base case. ^[61]
Balance sheet and capital allocation look disciplined. The buyback is steadily shrinking the share count and management is redeploying capital out of lower‑quality assets (Essential Home, eventually Mead Johnson) into high‑return core brands. ^[62]
The main known unknown is litigation. NEC lawsuits are still live, and even if the ultimate bill is manageable, the path there may be noisy. ^[63]

For investors scanning Google News or Discover today, Reckitt Benckiser looks very much like a textbook consumer‑staples compounder in the middle of a strategic reboot: leaner portfolio, fatter margins, faster emerging‑market engine – and a still‑awkward legal side‑plot.