Analysis of Haleon: A Closer Look at the £30.5 Billion FTSE 100 Company

The Haleon Group, a £30.5 billion FTSE 100 company, may not be a household name, but it is responsible for well-known products such as Panadol painkillers and Sensodyne toothpaste. Formed in 2018 from the merger of the consumer healthcare arms of GSK and Pfizer, the group was spun off from GSK in 2022 in the largest European listing in over a decade.

Despite its strong product portfolio, Haleon has faced challenges since its stock market debut in July 2022. The share price has only risen by 5%, with factors such as cost-of-living increases, lower incidence of Covid and flu, and a lack of focus on marketing being blamed for the lackluster performance. Additionally, there have been concerns about management culture and debt levels following the split from GSK.

Analysts at Berenberg remain optimistic about Haleon’s prospects, particularly with the upcoming US launch of Eroxon, a male erectile dysfunction treatment. They have set a target price of 407p, compared to the current 334p, citing a 17% discount to other personal care products groups. While other analysts are also positive about the company, the average target price is 364p.

Investors are keeping a close eye on Haleon as it navigates these challenges and works towards unlocking more value for shareholders. With a strong product lineup and potential growth opportunities, the company has the potential to turn its fortunes around in the future.