David Hayes Reiterates Hold Rating on Reckitt, Keeps $5600 Price Target Amid Heightened NEC Litigation Risks

Jefferies analyst David Hayes has maintained their neutral stance on RKT stock, giving a Hold rating on April 22.

David Hayes has given his Hold rating due to a combination of factors, including the latest developments in the NEC litigation involving Mead Johnson, a Reckitt subsidiary. The court’s refusal to grant summary judgment means the July bellwether case will now go before a jury, adding an additional layer of legal and headline risk that tempers the near‑term risk‑reward balance for the stock.

While one corporate entity was dismissed on technical grounds, the primary Mead Johnson operating company remains a defendant, and the judge believes there is enough evidentiary dispute for a jury to consider claims about warnings and product design. Against this backdrop, Hayes maintains a neutral stance, seeing limited justification to either materially upgrade or downgrade the investment case at this stage, and he keeps the price target unchanged at $5600.

In another report released on April 22, RBC Capital also maintained a Hold rating on the stock with a p6,200.00 price target.

Based on the recent corporate insider activity of 30 insiders, corporate insider sentiment is negative on the stock. This means that over the past quarter there has been an increase of insiders selling their shares of RKT in relation to earlier this year.