This report is not a personal recommendation and does not take into account your personal circumstances or appetite for risk.
Reckitt Benckiser shares have furthered their bounce from 4-month lows after its shares gapped 5% higher this morning. This comes as investors cheered consensus-beating FY15 results at both the top and bottom-line, a 12% hike to the dividend and management maintaining its guidance for comparable revenues up 4-5% this year and for moderate margin expansion in the medium-term. While the bounce puts the shares back in a 2.5yr rising channel that will please the bulls, especially those looking for safer equity exposure in a tough macro environment, it must be noted that a trend of falling highs since end-October has yet to be bettered and could hinder short-term progress. Already off their highs, the long wick and small candlestick body this morning suggests indecision after such a sharp move on a defensive stock. With a slightly negative impact from the acquisition of KY, could investors be concerned about overpaying for expan
sion in the faster growing healthcare segment, after such a high level of consolidation in the Pharma/Biotech sector already saw prices inflated?
Mike van Dulken, Head of Research
This research is produced by Accendo Markets Limited. Research produced and disseminated by Accendo Markets is classified as non-independent research, and is therefore a marketing communication. This investment research has not been prepared in accordance with legal requirements designed to promote its independence and it is not subject to the prohibition on dealing ahead of the dissemination of investment research. This research does not constitute a personal recommendation or offer to enter into a transaction or an investment, and is produced and distributed for information purposes only.
Accendo Markets considers opinions and information contained within the research to be valid when published, and gives no warranty as to the investments referred to in this material. The income from the investments referred to may go down as well as up, and investors may realise losses on investments. The past performance of a particular investment is not necessarily a guide to its future performance. Prepared by Michael van Dulken, Head of Research
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