Jefferies lowered its price target on Haleon (LON:HLN) to 400 pence from 410 pence in a note to clients on Wednesday, while keeping a Buy rating on the consumer health group’s shares ahead of its third-quarter results on October 29.
Haleon shares fell 0.3% to 342.6 pence on Wednesday. At that level, the new target still implies upside of almost 17%.
In an earnings preview, analyst David Hayes said several issues continue to frustrate investors. These include softer demand in Europe, “only a steady” improvement in the U.S. and a “precarious” recovery in the respiratory category.
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Hayes said the company’s move up into its mid-term growth guidance of 4% to 6% “awaits” in the fourth quarter.
The cut partly reverses Jefferies’ move in August. After Haleon’s second-quarter results, the firm raised its target to 410 pence from 400 pence. At the time, it said the company’s momentum had improved across every category except respiratory.
Other brokers are split on the stock. Deutsche Bank cut its target to 320 pence from 335 pence earlier this month and kept a Sell rating. In August, RBC Capital raised its target to 390 pence from 370 pence with a Sector Perform rating. Morgan Stanley lifted its target to 460 pence from 430 pence and kept an Overweight rating.
Haleon shares have fallen 8.9% so far this year but are up 3.2% over the past 12 months.
