Jefferies analyst David Hayes maintained a Buy rating on Haleon PLC today and set a price target of p440.00.
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David Hayes has given his Buy rating due to a combination of factors, despite the challenges Haleon PLC is currently facing. The company has experienced a reduction in its full-year organic sales growth forecast, which is now expected to be around 3.5%, lower than the previous guidance of 4-6%. This adjustment is primarily driven by weaker performance in the US market, where consumer demand remains soft and inventory reductions are ongoing.
Despite these setbacks, Hayes sees potential in Haleon’s ability to stabilize its operating margins, which are now projected to remain flat year-over-year. While the sales growth outlook has been dampened, the company’s strategic focus and potential for recovery in the longer term contribute to the Buy rating. Hayes believes that the current market conditions, although challenging, may present an opportunity for Haleon to outperform its peers in the future.
Hayes covers the Consumer Defensive sector, focusing on stocks such as Nestlé SA, Reckitt, and DANONE SA. According to TipRanks, Hayes has an average return of 2.9% and a 60.95% success rate on recommended stocks.
In another report released yesterday, TR | OpenAI – 4o also upgraded the stock to a Buy with a p408.00 price target.