Broker snap: Mixed picture at Reckitt

9th Feb 2011 13:43

While Panmure Gordon keeps its positive stance on household products group Reckitt Benckiser, it notes that its rating will remain clouded for some time to come.Reckitt, responsible for brands such as Dettol, Cillit Bang and Nurofen headache pills, produced a mixed picture in its 2010 results. Like-for-like sales growth was in line with expectations, at 4% in the fourth quarter, 5% for the full year on a rounded basis. The broker notes, however, that sales were slightly light in the final three months at £2.27bn, compared with forecasts of £2.35bn. "Pharma growth remains strong however and the fact that Suboxone film strips [its opioid dependence treatment product] have already grabbed 25% of the market in the US does reduce the potential hit to generics if and when they enter," the broker said.Panmure maintains its 'buy' rating and 3,800p target price.