Jefferies analyst David Hayes has maintained their neutral stance on RKT stock, giving a Hold rating on April 24.
David Hayes has given his Hold rating due to a combination of factors surrounding recent legal developments. The dismissal of the first bellwether trial in the multi-district litigation (MDL) concerning the connection between infant formula and necrotizing enterocolitis (NEC) in premature babies was a positive outcome for Reckitt. However, the court’s decision also indicated that other plaintiffs might present more compelling evidence in the future, leaving the door open for further legal challenges.
Despite the favorable ruling in this initial case, the ongoing nature of the litigation, with three more bellwether cases still active, introduces uncertainty for Reckitt. This mixed outcome suggests that while there is some relief from the immediate legal threat, the potential for future liabilities remains. Consequently, Hayes’s Hold rating reflects a cautious stance, acknowledging both the positive and uncertain aspects of the situation.
In another report released on April 24, Barclays also maintained a Hold rating on the stock with a £53.00 price target.