Reckitt Benckiser Group PLC ( LSE:RKT , OTCQX:RBGLY )'s third-quarter update marked a 'step back' in the investment case, according to Jefferies, although the broker retained its 'buy' rating and 5,900p price target.
Jefferies said Core Reckitt like-for-like sales growth of 3.3% missed its 3.9% forecast and the 4% market consensus, with weaker volumes driving the shortfall.
North America was the main disappointment, with like-for-like sales falling 1.3% compared with Jefferies' forecast for 1.3% growth.
The broker blamed longer-than-expected manufacturing outages during Lysol capacity upgrades, alongside weaker cold and flu incidence and retailer order timing.
Jefferies said the late emergence of the Lysol disruption was likely to frustrate investors, particularly because it was linked to a capacity upgrade initiated by Reckitt.
The company lowered its 2026 Core Reckitt growth guidance to between 3.5% and 4.5% from 4% to 5%.
Emerging Markets grew 8%, slightly below expectations, while Europe performed better than forecast with growth of 0.8%.
Mead Johnson Nutrition delivered 2.7% growth, ahead of Jefferies' 1% estimate and the 1.6% consensus.
Jefferies said 2026 earnings estimates were unlikely to move significantly because the weaker sales outlook should be offset by lower finance costs.
The broker said Reckitt trades on around 15 times forward earnings and maintained its 'buy' recommendation.
