Canaccord raises target for Reckitt Benckiser after better-than-forecast Q1

24th Apr 2015 10:15

Reckitt Benckiser Group rallied as the maker of Dettol handwash and Durex condoms reported a rise in first-quarter revenue that exceeded analysts' estimates, with broker Canaccord raising its target price by 100p. The group's first quarter rose 1% to £2.22bn in the first three months of 2015.Chief executive Rakesh Kapoor said the consumer health-brands division continued to deliver growth.With the health division was driven by an increase in cold and flu season, Cannccord Genuity said the results were "not to be sneezed at" ."The cost savings project, Supercharge, has begun successfully and should help to support the operating margin delivery."However, despite this broadly good performance, Canacord retained its 'sell' stance on the shares given the full year P/E ratio of 24 times and EV/EBITDA ratio of 18 times.The broker raised its target prices to 4,600 to 4,500p.