Free Trial

Reckitt (RKLTN; A-/A3) {RKT LN Equity}

CONSUMER STAPLES
  • BI litigation analyst see "up to $3b" in NEC claims costs & up to 3,000 cases to be ultimately filed, analyst noting that figure is likely to be shared between Reckitt and Abbott (ABT; Aa3/AA-) {ABT US Equity}; {NSN SAQI35DWRGG1 <GO>}.
  • Its been a ~flat run since Friday & Monday's sell-off for RKLT € & £ lines with little carryover to high-grade ABT lines. We don't have a firm view on spreads outside the fact drawn-out timing of Federal cases leaves the name unattractive.
  • Equities have stayed down -18%/-6% for both despite support from equity analysts, company has had no slow-down to regular daily buybacks - as it highlighted in call this week - no change to capital allocation.
117 words

To read the full story

Close

Why MNI

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.
  • BI litigation analyst see "up to $3b" in NEC claims costs & up to 3,000 cases to be ultimately filed, analyst noting that figure is likely to be shared between Reckitt and Abbott (ABT; Aa3/AA-) {ABT US Equity}; {NSN SAQI35DWRGG1 <GO>}.
  • Its been a ~flat run since Friday & Monday's sell-off for RKLT € & £ lines with little carryover to high-grade ABT lines. We don't have a firm view on spreads outside the fact drawn-out timing of Federal cases leaves the name unattractive.
  • Equities have stayed down -18%/-6% for both despite support from equity analysts, company has had no slow-down to regular daily buybacks - as it highlighted in call this week - no change to capital allocation.