Berenberg lowers Haleon stock price target to $13.41 on slower growth

Published 12/08/2025, 12:48
Berenberg lowers Haleon stock price target to $13.41 on slower growth

Investing.com - Berenberg has lowered its price target on Haleon Plc. (NYSE:HLN) to $13.41 from $13.48 while maintaining a Buy rating on the consumer healthcare company. With the stock currently trading at $9.47 and showing low price volatility, InvestingPro analysis suggests the company is slightly undervalued.

The adjustment follows Haleon’s H1 2025 results released on July 31, which showed Q2 group organic sales growth of 3.0%, falling short of consensus expectations of 3.3%.

Volume/mix growth for the quarter came in at 0.5%, below the 1.2% consensus forecast, while pricing grew by 2.5%, exceeding the anticipated 2.1%.

Haleon reported H1 adjusted operating margins of 22.7%, approximately 40 basis points ahead of consensus forecasts, demonstrating strength in profitability despite slower sales growth.

For full-year 2025, Haleon has revised its outlook downward, now expecting approximately 3.5% like-for-like growth compared to its previous guidance of 4-6%, while maintaining its projection for high-single-digit organic operating profit growth. The company’s market capitalization stands at $42.53 billion, with analysts maintaining positive forecasts for profitability this year.

In other recent news, Haleon plc announced a change in its financial reporting structure, which will take effect with the 2025 half-year results. The company will now categorize its business into six segments: Oral Health; Vitamins, Minerals, and Supplements; Pain Relief; Respiratory Health; Digestive Health; and Therapeutic Skin Health and Other. Additionally, Haleon disclosed that two senior executives, Adrian Morris and Tamara Rogers, acquired ordinary shares under the company’s Share Reward Plan. Each executive purchased shares on the London Stock Exchange (LON:LSEG) and received additional matching shares at no cost. In another development, Haleon appointed Bláthnaid Bergin to its Audit & Risk Committee and Matt Shattock to its Environmental & Social Sustainability Committee. Furthermore, Chief Financial Officer Dawn Allen received vested awards of ordinary shares as part of her remuneration package, designed to compensate for incentives forfeited from her previous employment. These awards are subject to performance conditions and retention requirements.

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