- Investors looking to diversify exposure to consumer staples internationally could take a look at UK-based company Reckitt, which owns a number of well-regarded hygiene, nutrition and health-related brands.
- However, the company, which operates with a relatively weak balance sheet, is still haunted by executional problems and previous managerial missteps.
- The company is in turnaround mode, but so far, lacks tangible evidence of success. This is not adequately reflected in the valuation.
- Consumer staples companies are generally richly valued in 2022 as investors appear to be pricing in a recession and are willing to pay up for safety and peace of mind.
- If I were to choose, I would pay up and go with larger and much better managed peers such as Procter & Gamble.
For further details see:
Reckitt: Prevailing Uncertainties Do Not Justify Current Valuation