Reckitt Benckiser “overweight”

12/09/05 - Morgan Stanley

LONDON, December 9 (newratings.com) – Analysts at Morgan Stanley reiterate their "overweight" rating on Reckitt Benckiser Plc (RB.-GBX). The target price is set to 2,000p.

In a research note published this morning, the analysts mention that the BHI acquisition is likely to ease investor concerns regarding the sustainability of the company’s better-than-average revenue growth and margin expansion. The analysts expect the BHI acquisition to be accretive to Reckitt Benckiser’s EPS in the first year of completion and the accretion to reach 7.5% by 2008.