Haleon Stock: Goldman Cautious, Berenberg Bullish

After a strong run over the last month or so, Haleon (LON: HLN) shares were downgraded by analysts at Goldman Sachs in a recent note, with the investment bank citing valuation concerns. However, Berenberg analysts still see the rise continuing.

Goldman cut its rating for the consumer healthcare company to Neutral from Buy in a note to clients on Tuesday, raising the price target to 380p from 360p a share.

The investment bank noted the shares have outperformed since the company's fiscal 2204 results, especially over the last month. However, they now feel it is trading at a 5% premium with staples versus a 16% discount historically.

With the stock having now reached several key milestones, Goldman Sachs sees limited catalysts pushing Haleon's near-term price performance. Furthermore, they see Pfizer's 22.6% (PFE) remaining holding as an overhang in the short term.

On the other hand, Berenberg analysts initiated Haleon's American depository receipts with a Buy rating and $11.44 price target in a note to clients, stating that it remains constructive on the stock.

Despite Goldman seeing a lack of near-term catalysts, Berenberg believes Haleon's key catalysts are becoming increasingly more visible and they expect its volume growth to inflect in the third quarter to 3.9%.

They note that this will come as the drag from destocking in the key U.S. over-the-counter segment ended in the second quarter, and the tough comparatives in China are now behind the company.