Reckitt Benckiser Group PLC

RKT: XLON (GBR)
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GBX 3,696.00FysTvbtkrjc

Abbott and Reckitt: Latest Infant Formula Judgment Against Abbott Weighs on Shares

As the multiple lawsuits over necrotizing enterocolitis, or NEC, related to Abbott and Reckitt Benckiser continue to wend their way through the courts, last week’s judgment against Abbott has put shares of both firms under pressure. Considering the infant-formula makers are at various stages of appeal and the nuanced scientific view, we’re leaving our fair value estimates unchanged for now. We continue to view Abbott’s narrow economic moat and Reckitt’s wide economic moat as solid, with strong intangible assets in their nutrition businesses.

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