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The world's largest household goods maker ended 2007 on a high point - buying Adams Respiratory Therapeutics , a US pharmaceuticals group, for £1.1bn will help Reckitt Benckiser scale up its global over-the-counter drugs business.
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The group is highly-regarded by analysts, and it's easy to see why. At its third-quarter results at the end of October, the group raised its full-year net revenue growth target to 9 per cent at constant exchange rates and upgraded its earnings guidance to 15 per cent growth. Drivers include new products such as Air Wick Freshmatic and Vanish Crystal White, and strong sales from health and personal care products including Dettol, Nurofen and Strepsils. True, the shares trade on a far from bargain basement 22 times 2007 earnings. But as one of the highest quality companies in the consumer staples universe, that looks fully warranted and the shares continue to rate medium-term good value at 2,700p.
| Company name | Price (p) | Mkt val. (£m) | P/E ratio | Div. yld (%) | 12M price chng.(%) | Last IC view |
|---|---|---|---|---|---|---|
| RECKITT BENCKISER | 2584 | 18,398 | 21.1 | 1.93 | 5.25 | Good value, 2769p, 25 Jul 2007 |
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-IC-1.5.4a-prod - 31/10/2008 13:11:34 - carlos.princz
