FTSE 100 incumbent Reckitt (LSE: RKT) was once seen as a no-brainer defensive buy for many investors.
Things haven’t been great recently – more on that later – so is there an opportunity for me to buy cheaper shares with a view to a recovery toward former glories? Let’s take a closer look.
Tough times
As a reminder, Reckitt is one of the largest consumer goods businesses out there. With a raft of popular brands under its belt, including Dettol, Calgon, Air Wick, Durex, Nurofen, and more, it’s no wonder it’s been a popular stock in the past.
Unfortunately, recent issues have prompted the shares to fall sharply. Over a 12-month period they’re down 22% from 5,826p, to current levels of 4,501p.
What’s happened?
Going back to 2017, the acquisition of baby formula business Mead Johnson Nutrition for over $16bn was the catalyst for Reckitt’s struggles, in my view. As well as arguably overpaying,…
