Haleon Shares: JPMorgan Bearish, Warns On Growing Risks

JPMorgan cut its price target on Haleon (LON:HLN) to 295 pence from 315 pence and kept an Underweight rating on the stock in a note on Monday, also placing it on Negative Catalyst Watch.

The bank warned that the consumer health company’s medium-term growth targets are increasingly at risk.

“We see growing risk to Haleon’s mid-term algorithm and place the stock onto Negative Catalyst Watch into results on 29th October,” analyst Celine Pannuti wrote.

JPMorgan estimates third-quarter like-for-like sales growth, which excludes the effect of acquisitions, disposals and currency moves, is running at just 3%. That would put Haleon at the bottom of its 3% to 5% guidance range for a second year in a row.

Pannuti believes this makes the company’s medium-term goal of 4% to 6% growth “increasingly untenable.”

The analyst expects Haleon to lower its medium-term sales and operating profit growth targets, leaving earnings per share about 7% below consensus by fiscal 2028.

Pannuti pointed to weak volume growth and also noted that over-the-counter medicines and vitamins and supplements, which make up 70% of sales, are growing more slowly and losing market share globally.

JPMorgan cut its 2027 and 2028 earnings estimates for Haleon by 3% and 5%, respectively. Haleon trades at 15.2 times 2027 earnings, a 24% discount to European household and personal care peers, but JPMorgan expects the shares to keep underperforming.