Reckitt Benckiser Stock Surges on Key U.S. Legal Victory, JPMorgan Upgrade

Reckitt Benckiser shares surged on Monday, lifted by a significant legal victory in the United States and a subsequent stock upgrade from JPMorgan. The dual catalysts prompted investors to reassess the litigation risk that has weighed on the company's valuation, sending the stock sharply higher even as the broader London market declined.

Favorable Verdict in Bellwether Trial

A U.S. jury delivered a unanimous verdict in favor of Reckitt's Mead Johnson nutrition subsidiary in a key court case. The trial was the first bellwether case in the federal multidistrict litigation (MDL) in the Northern District of Illinois, where plaintiffs alleged that Enfamil preterm baby formula caused a serious bowel condition known as necrotizing enterocolitis (NEC).

According to the report, the favorable ruling on Monday means Mead Johnson now has no outstanding adverse jury verdicts within the federal MDL. This milestone marks a crucial step in resolving a major legal overhang that analysts believe has been the primary discount applied to Reckitt's stock price.

Analyst Upgrade Amplifies Gains

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Adding to the positive momentum, JPMorgan upgraded Reckitt Benckiser's stock to Overweight from Neutral and raised its price target on the London-listed shares to 6,500p from 5,800p. Analyst Celine Pannuti noted that with a recent spin-off complete, investor focus can now shift to the valuation of the company's core business.

The combination of the legal win and the analyst upgrade created a powerful tailwind for the stock, which stood out as the top performer on the FTSE 100 index. Key market moves included:

• Reckitt's stock price climbed 4.2% to trade at 5,347 pence.
• The shares reached a session high of 5,432p, up from the previous close of 5,132p.
• The broader FTSE 100 index fell approximately 0.9% during the same session, pressured by rising oil prices and a global bond sell-off.