On Tuesday, UBS reaffirmed its Buy rating on Haleon PLC, listed on both the London Stock Exchange (LSE:HLN) and the New York Stock Exchange (NYSE:HLN), with a steady price target of GBP4.10. The firm's projection is based on an anticipated +3.2% organic sales growth for the first quarter.
This growth expectation is attributed to a strong performance in the Oral Health sector and improvements in Vitamins, Minerals, and Supplements (VMS), which are expected to offset the more challenging comparisons in the Pain and Respiratory segments.
The company's Oral Health division has been a strong performer, and the anticipated continuation of this trend underpins the positive outlook. The improvement in the VMS sector adds to the company's growth prospects, providing a balanced source of revenue that can help mitigate any softness in other areas of the business.
UBS's analysis suggests that the expected organic sales growth will be sufficient to counterbalance the tougher comparative figures from the previous year in both the Pain and Respiratory categories. This resilience in the face of challenging comparisons illustrates the company's ability to maintain momentum across its diverse product portfolio.
The price target of GBP4.10 remains unchanged, indicating the firm's confidence in the company's strategy and market position. This target reflects the analyst's assessment of the company's future performance based on current market conditions and internal projections.
Haleon PLC's stock continues to be seen favorably by UBS, with the Buy rating indicating a positive outlook on the company's share value in the face of market challenges and sector-specific headwinds. The company's strategic focus on key growth areas is expected to drive performance and support the achievement of the projected sales figures.
InvestingPro Insights
Amidst the optimistic outlook provided by UBS, InvestingPro data and tips offer additional insights into Haleon PLC's financial health and market performance. With a gross profit margin of 61.59% over the last twelve months as of Q4 2023, Haleon PLC demonstrates an impressive ability to retain earnings after the cost of goods sold, underscoring the firm's efficiency and pricing strategy. This aligns with the strong performance in the Oral Health sector that underpins UBS's positive outlook.
Despite market volatility, Haleon PLC is trading near its 52-week low, which may present a potential entry point for investors considering the company's prospects. Analysts predict the company will be profitable this year, a sentiment reinforced by the company's profitability over the last twelve months. These InvestingPro Tips suggest that Haleon PLC's stock could be undervalued, offering an opportunity for investors seeking long-term growth.
To further explore these insights and discover additional InvestingPro Tips for Haleon PLC, visit https://www.investing.com/pro/HLN. There are 4 more tips available on InvestingPro, and by using the coupon code PRONEWS24, readers can get an additional 10% off a yearly or biyearly Pro and Pro+ subscription.
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