The share price of Dettol and Nurofen owner Reckitt (LSE: RKT) has taken a huge hit in recent years. Back in 2020, it was near 8,000p. Today however, it’s sitting at 4,130p – about 48% lower.
Is the share price a bargain at current levels? Or could we be looking at a value trap? Let’s discuss.
Recent results
Reckitt’s recent results for the first half of 2024 weren’t terrible.
For the period, like-for-like net revenue growth was up 0.8%. Meanwhile, free cash flow was up 8.3%.
Looking ahead, the company said that it plans to offload its portfolio of homecare brands (which includes Air Wick and Cillit Bang) by the end of 2025 to focus on healthcare and hygiene. This business generated sales of around £1.9bn last year and analysts at Jefferies reckon a sale could bring in nearly £5bn.
Significant uncertainty
The problem is that there’s a lot of uncertainty here right now due to Mead Johnson infant…
