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Haleon gets target hike as UBS raises 'forever' sales target

Published: 08:06 09 Oct 2024 EDT

A Haleon brand

Haleon PLC (LSE:HLN, NYSE:HLN) has received a price target upgrade from UBS ahead of its third quarter update on 31 October as it becomes increasingly confident over its longer-term revenue opportunities.

Foreign exchange movements will affect this year’s adjusted earnings, which UBS has trimmed by 3%, but that aside the Swiss bank believes the GSK spin-iut has shown it can deliver 4-6% organic sales growth.

UBS has also upped its estimate of Haleon’s terminal or 'forever' growth (the amount that sales can grow in perpetuity,) to 2.5% (versus 2% previously).

UBS added that this leads to its price target being raised to 445p versus 410p previously.

Shares today were 379p.

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