Shares of consumer goods giant Reckitt Benckiser Group (LSE: RKT) navigated a volatile trading session on the London Stock Exchange, ultimately closing almost flat in a performance that masks a broader tug-of-war between recent recovery momentum and persistent market challenges.
The stock finished the day with a slight decline of just 0.01% at a price of 5,096 GBp, capping a day of fluctuations that did little to alter its near-term trajectory.
This stability, however, comes after a period of significant positive movement for the maker of Dettol and Lysol. The stock has shown signs of a strong turnaround, having recently rebounded from its 52-week low of 4,093 GBp.
This recovery is supported by a significant drop in short interest, with bearish bets on the stock falling by over 44% in May, indicating waning negative sentiment among investors. The share price has also seen a recent increase of over 2.4% in the prior week, reflecting cautious optimism.
Underpinning this sentiment is the company’s resilient start to 2025. Reckitt reported a modest 1.1% like-for-like net revenue growth in the first quarter, driven by a robust 10.7% expansion in emerging markets that helped offset difficulties in North America and Europe.
Management has maintained its full-year guidance for 2-4% growth, suggesting confidence in its strategic initiatives and product innovations. The company also offers a respectable dividend yield of nearly 4%, supported by strong free cash flow of £2.1 billion.
Analysts remain broadly positive on Reckitt’s long-term prospects. The stock holds a consensus “Buy” rating, with no analysts issuing sell ratings. The average analyst price target sits at 5,836.47 GBp, implying a potential upside of over 14% from its current price.
While technical indicators are mixed, with the stock nearing oversold territory, the overall analyst confidence and a significant reduction in short positions suggest that many see value at current levels, despite the day’s uneventful close.
