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Citi favors Haleon over Reckitt Benckiser amid weak Q1 outlook and cost pressures.

Market News
31 Mar 2026
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Citi analysts expect Reckitt Benckiser's Q1 update to lack positive catalysts due to soft trading in key markets, including weak US flu sales and European pricing pressures. They prefer Haleon, citing its more defensive cost structure amid rising costs. Reckitt's exposure to oil-linked inputs may hurt margins, though its diverse portfolio and emerging market presence could support valuation later in the year. The sector outlook may improve from Q2 as flu season eases and over-the-counter comparisons become easier.

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