Citi reiterates buy for Reckitt Benckiser, hails unique asset mix

Citi reiterated its 'buy' recommendation and target price on shares of Reckitt Benckiser, telling clients it saw potential for double digit earnings per share growth over 2018 to 2020.

Key to the broker's investment thesis was RB's "unique asset mix", whose unique features would allow sales to grow by between 4.5% and 5%.

Indeed, a detailed analysis of the company's portfolio revealed that its 'real' growth rate in 2016 was 100 basis points above that of its peers, Citi said.

RB also had a unique Route To Market in pharmacies, which RB would be able leverage to raise sales of recently-acquired Mead Johnson's products by 1% a year.

"New RB" could deliver double digit EPS growth over 2018-2020e — This is 300bps above industry "new normal" and without extreme (and risky) cost cutting.

The broker reiterated its 'buy' recommendation and 9,100p target.