Analyst Note| Philip Gorham, CFA, FRM |
Reckitt reported respectable third-quarter sales results. Revenue in the consumer health division was slightly above our forecasts due to rising demand for cold and flu products, with other divisions reporting sales in line with our estimates. Reckitt has both short- and long-term drivers, and we think this is an above-average quality business model in the consumer staples sector, and believe the current market value is a fairly attractive entry point. We reiterate our wide moat rating and GBX 6,500 fair value estimate.