Haleon: Analysts Positive Ahead of Earnings

Consumer healthcare firm Haleon (LON: HLN) has attracted positive sentiment from analysts ahead of its Q4 and full-year earnings report, which is scheduled for February 27, according to the company’s financial calendar.

Barclays and Goldman Sachs both weighed in, with contrasting but optimistic views on the company’s performance and future prospects.

Barclays maintained an “Overweight” rating on the stock with a price target of 415p a share, reflecting significant upside from its current share price. 

The bank said it believes Haleon is nearing an inflection point for earnings per share (EPS) growth. 

Disposals of non-core assets and a reduction in leverage have weighed on EPS in the past, but Barclays suggests this phase is now behind the company. 

“We think this is now at an end, and with Haleon spending c.£800m on buybacks and minority buyouts, balance sheet and cash looks like being an EPS tailwind going forwards,” wrote the bank.

Goldman Sachs is more cautious about the stock as a whole, assigning it a “Neutral” rating, but the firm expects Haleon to deliver “a solid Q4.” 

The bank forecasts 6.7% organic sales growth for the quarter, with volumes improving to 4.8%. 

However, it notes that North American growth could be muted at 2.1%, partly due to a soft start to the US cold and flu season. 

In contrast, Goldman expects robust growth in EMEA and LATAM regions at 10.4%. For the full year, Goldman anticipates Haleon’s margin to contract slightly to 22.3%.