Haleon Share Price (HLN) Retests Resistance Following Upgrade

Haleon’s share price (LON:HLN)  rose 0.21% to 378.88p in morning trading after Barclays upgraded the consumer healthcare giant to Overweight from Equal Weight, lifting its price target to 420p from 380p.

The move comes as part of a broader reassessment of the European consumer staples sector and marks a notable reversal from the bank’s previous stance on the stock.

The upgrade represents a significant shift in sentiment at Barclays, which downgraded Haleon to Equal Weight just back in September amid concerns over prolonged weakness in the U.S. market. Analyst Warren Ackerman now sees improving prospects for the company’s American operations, which account for approximately 35% of total revenue. The firm expects Haleon to complete its efforts to address inventory challenges in the U.S. drugstore channel by the end of the fourth quarter.

Barclays projects 1.5% organic sales growth in the U.S. for 2026, supported by easier year-over-year comparisons, enhanced innovation, and improved execution under new U.S. management. The bank also anticipates 10% earnings per share growth in 2026, driven by the completion of dilutive disposals and realization of productivity savings. This outlook suggests a meaningful inflection point for a business that has struggled to gain momentum in its largest geographic market.

The stock now sits at a technically significant level, having gained just 1.04% over the past twelve months and underperformed the broader FTSE 100 index. Markets are watching whether shares can break through current resistance, which could signal a sustained move higher. The 420p price target implies upside of approximately 11% from current levels.

Analysts Grow Bullish on Haleon

Barclays is not alone in its renewed optimism. Goldman Sachs upgraded Haleon from Neutral to Buy in recent weeks, raising its price target to 440p from 415p. The Wall Street bank forecasts organic sales growth of 4.7% in fiscal year 2026 and 5.1% in fiscal year 2027, driven by emerging market volumes, a U.S. recovery, and sustained high-single-digit growth in the Oral Health segment. Goldman also anticipates operating margin expansion of 130 basis points by fiscal year 2027, surpassing consensus estimates.

Morgan Stanley has similarly endorsed Haleon’s prospects, upgrading the company to Overweight with a 420p price target. The firm cites growing confidence in the medium-term growth and margin profile, expecting acceleration from 2026 as cost savings, innovation, and distribution gains materialize. Management’s confidence in achieving £800 million in cost savings, which is tracking ahead of plan, further bolsters this positive outlook.

Price Targets

The convergence of upgrades from three major investment banks suggests markets are beginning to price in a more favorable outlook for Haleon’s core operations. Whether the company can deliver on expectations for U.S. market stabilization and margin expansion will likely determine if shares can sustain a breakout above current resistance levels.