Haleon shares’ (LON: HLN) primary listing is on the London Stock Exchange under the ticker symbol HLN and is a constituent of the blue chip FTSE 100 index. Furthermore, Haleon has American Depository Shares (ADS) on the New York Stock Exchange, using the same HLN ticker (NYSE: HLN)
The company is UK-based, established on 18 July 2022 as part of a corporate spin-off from GSK. However, the company was formed in 2019 via the merger of GSK and Pfizer’s consumer healthcare businesses.
Since its inception, the company has emerged as a major consumer healthcare business. It sells well-known brands like Sensodyne toothpaste, Panadol pain relievers, and Centrum vitamins; focusing on over-the-counter medicines and health products for everyday use.
Haleon operates primarily through five brand categories: Oral Health, Vitamins, Minerals and Supplement, Pain, Respiratory, Digestive and Other.
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Haleon EPS and Revenue Breakdown 2020-2023
| Haleon | Annual EPS | Annual Revenue |
|---|---|---|
| 2021 | 15.1p | £9.55billion |
| 2022 | 11.5p | £10.86 billion |
| 2023 | 11.3p | £11.30 billion |
Haleon Share Price & Dividends
The Haleon share price has been ranging for the last year or more (as of April 21, 2024), failing to break above the 344p per share mark and below the 308p/309p level. After initially falling following its spin-off from GSK, the stock gained some traction, climbing to a high of 357.7p before pulling back into a range, where it has been since.
Haleon does pay dividends, with its current dividend yield at 1.84%.
Consumer Healthcare Industry Comparison
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Haleon Share Price Forecast
In a recent research note, analysts at HSBC initiated coverage of Haleon with a Buy rating and 370p per share price target, telling investors they view Haleon as having the strongest consumer health portfolio. Analysts at the bank feel the company is building a track record of superior execution. The company’s “class-leading growth can be sustained,” says HSBC, which adds that as market confidence in Haleon’s mid-single-digit growth algorithm rises, the shares can re-rate.
Meanwhile, Deutsche Bank recently lowered its price target for Haleon stock to 345p from 350p per share, keeping a Hold rating on the stock.
Finally, Argus analysts believe the recent weakness in HLN provides investors with a buying opportunity. The firm kept a Buy rating and $10 price target in place, explaining that the company is leveraging its top brands, which include Advil, Theraflu, and Centrum, to expand household penetration and pursue new growth opportunities in various channels and geographic regions.
The company, according to Argus, is also looking to take advantage of emerging secular trends, including the increasing popularity of preventive medicine and the rising shift from prescription to over-the-counter medications.
Our View: Haleon is a well-established company in its sector that certainly has the ability to gain market share. However, its lack of share price upside over the last 10 months or so maybe something for investors to consider.
Stock Suitability
If you are thinking about investing in Haleon shares, there are various factors to consider, with many of them depending on your personal circumstances and characteristics. Here’s a breakdown to help you decide if the stock aligns with your goals:
Haleon operates in the consumer health space, selling everyday products like painkillers and vitamins. This sector offers steady demand, potentially appealing to investors seeking stable markets.
Haleon has a history of dividend payouts and potential for future growth, offering a stream of income for income-focused investors.
If you’re looking for companies positioned for industry expansion, this one might be a fit. They have the potential to grow market share in the consumer health market.
The consumer health sector is generally stable but not invincible. Economic downturns or changes in consumer preferences could impact sales and top line. Investors with a moderate risk tolerance may be comfortable with potential volatility in Haleon’s share price as they evaluate its long-term growth potential and dividend history. However, if you have a low-risk tolerance, Haleon might not be the best fit.
