Reckitt’s RBP Valuation Raised to GBP2.6b in Demerger: Goldman
2014-09-04 06:31:54.873 GMT
By Chiara Remondini
Sept. 4 (Bloomberg) -- Goldman Sachs revises valuation of
Reckitt Benckiser’s RBP business to GBP2.6b, or ~355p per/shr,
according to note.
* Goldman sees de-merger more likely than sale of RBP; says it
previously valued RBP at GBP1.1b in possible sale
* Confirms buy, PT 6,215p vs 6,125p on added value attributed
to RBP from demerger, partly offset by reduced earnings
ests.
* Revising ests. for RBP in light of updated pipeline incl.
product development in adjacent categories, evolution of
suboxone franchise
* Cuts 2014, 2015, 2016 EPS ests. by 6%, 2%, 3% respectively
as use of cash is deferred
* Defers assumptions on cash use given lack of activity
YTD; still sees significant deployment with GBP13b spend
in 2015-2020
* NOTE July 28: Reckitt to pursue Pharma unit demerger,
separate U.K. listing
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To contact the reporter on this story:
Chiara Remondini in Milan at +39-02-8064-4241 or
cremondini@bloomberg.net
To contact the editors responsible for this story:
James Ludden at +44-20-7673-2645 or
jludden@bloomberg.net
Jurjen van de Pol
2014-09-04 06:31:54.873 GMT
By Chiara Remondini
Sept. 4 (Bloomberg) -- Goldman Sachs revises valuation of
Reckitt Benckiser’s RBP business to GBP2.6b, or ~355p per/shr,
according to note.
* Goldman sees de-merger more likely than sale of RBP; says it
previously valued RBP at GBP1.1b in possible sale
* Confirms buy, PT 6,215p vs 6,125p on added value attributed
to RBP from demerger, partly offset by reduced earnings
ests.
* Revising ests. for RBP in light of updated pipeline incl.
product development in adjacent categories, evolution of
suboxone franchise
* Cuts 2014, 2015, 2016 EPS ests. by 6%, 2%, 3% respectively
as use of cash is deferred
* Defers assumptions on cash use given lack of activity
YTD; still sees significant deployment with GBP13b spend
in 2015-2020
* NOTE July 28: Reckitt to pursue Pharma unit demerger,
separate U.K. listing
For Related News and Information:
First Word scrolling panel: FIRST<GO>
First Word newswire: NH BFW<GO>
To contact the reporter on this story:
Chiara Remondini in Milan at +39-02-8064-4241 or
cremondini@bloomberg.net
To contact the editors responsible for this story:
James Ludden at +44-20-7673-2645 or
jludden@bloomberg.net
Jurjen van de Pol