Jefferies Lifts Haleon Price Target After Margin Beat

Haleon (LON: HLN), the consumer health group behind Sensodyne, Panadol and Advil, has had its price target raised by broker Jefferies to 410p from 400p after half-year results showed profit margins beating expectations. The shares were little changed on the news.

HLN traded at around 363.2p in early dealing on Monday, barely above Friday’s close of 363.10p. That leaves the stock roughly 11% below its 52-week high of 407.84p and well above its 268.95p low for the year.

Haleon’s H1 2026 results showed operating margin, the share of sales converted into profit, expanding by roughly 70 basis points more than forecast, driven by cost savings. Organic sales growth, which strips out currency and acquisition effects, came in at around 2.6%, leaving open the question of whether the group can turn stronger profitability into faster growth. Jefferies’ revised 410p target implies roughly 13% upside from Friday’s close.

The 2.5% increase in Jefferies’ target is modest against a volatile history: the broker lifted its Haleon target from 385p to 410p in August 2024, pushed it as high as 450p the following month, then trimmed it back to 400p before this latest revision. The pattern reflects a stock caught between clear margin progress and lingering caution over demand, particularly in North America.

Wall Street’s average target on Haleon sits at around 420.8p, above Jefferies’ revised figure. Other brokers, including Barclays, JPMorgan and Rothschild & Co Redburn, have also revisited their views on the stock this year, underscoring how divided sell-side opinion remains on the pace of any sales recovery.

The unresolved question for Haleon remains whether its margin gains can translate into stronger organic sales growth, particularly given continued demand caution in North America.