Stock market today: S&P 500 hits fresh record close on stronger economic growth
On Friday, Morgan Stanley (NYSE:MS) analyst Rashad Kawan upgraded Haleon PLC (HLN:LN) (NYSE:HLN) stock rating from Equalweight to Overweight and raised the price target to GBP 4.25, up from the previous GBP 4.00. The upgrade reflects the firm’s confidence in Haleon’s ability to outperform its peers, citing the company’s resilient product categories, market share gains, and a well-defined cost-saving program.
The analyst highlighted Haleon’s strong consumer appeal amidst an uncertain economic backdrop. Morgan Stanley’s revised outlook is based on the expectation that Haleon will continue to achieve market share gains and benefit from its categories’ resilience. The firm anticipates that these factors, along with Haleon’s cost-saving measures, will contribute to the company’s sustained outperformance.
In the detailed commentary, the analyst noted that Haleon’s recent Capital Markets Day showcased the company’s potential and opportunities for growth. Morgan Stanley had expected Haleon to reiterate its top-line guidance of 4-6% growth, which aligns with the firm’s analysis of Haleon’s end-market performance indicating continued outperformance.
The unexpected reveal of Haleon’s extensive £800 million cost-saving program was particularly noteworthy for Morgan Stanley, especially the clarity provided on the program’s implementation over the next 3-4 years. As a result of these new insights, Morgan Stanley has increased its earnings per share (EPS) estimates for Haleon by 6% for the year 2027, acknowledging that there could be further upside if Haleon reaches the higher end of its guidance range.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.