Free Trial

Reckitt equities don't get support from equity analyst takes

  • Reckitt has seen a stream of bullish equity analyst views (supported by management's confidence yesterday & relative market cap wipe out vs. liability expectations) - it hasn't helped its stock that is down -4% {RKT LN Equity} and the worst performing in €IG basket. Credit mid's (A3, A-) are unch today - as we would expect now.
  • As we mentioned yesterday, our issue isn't with the extent of liability pricing (proxied in equity losses) but more-so the timing of the start of the Federal cases next year - it'll mean spreads will need to continue pricing the liability size uncertainty for at least the next ~9-12months before we get firmer clarity.
  • In the near term, there could be a positive catalyst from success on appeal (company expects) on last weeks $60m state-loss - we still don't see that as an attractive enough to take on spreads here.

To read the full story



MNI is the leading provider

of intelligence and analysis on the Global Fixed Income, Foreign Exchange and Energy markets. We use an innovative combination of real-time analysis, deep fundamental research and journalism to provide unique and actionable insights for traders and investors. Our "All signal, no noise" approach drives an intelligence service that is succinct and timely, which is highly regarded by our time constrained client base.

Our Head Office is in London with offices in Chicago, Washington and Beijing, as well as an on the ground presence in other major financial centres across the world.