Haleon looks good on J&J read across, reckons Credit Suisse
Credit Suisse believes the appetite for Haleon shares has increased sufficiently for GSK/Pfizer to consider unloading their residual holding
Company
LON:HLN
Haleon PLC is a consumer healthcare company that was demerged from GlaxoSmithKline PLC and Pfizer in July 2022. It is focused on improving the health and wellness around the world, with brands including toothpastes, painkillers and vitamins.
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Credit Suisse believes the appetite for Haleon shares has increased sufficiently for GSK/Pfizer to consider unloading their residual holding
From today, former parents GSK and Pfizer can start to sell down their combined 45% stake
Thursday might see sales of Haleon stock from Pfizer and GSK after their lock-up ends while US inflation for October will be revealed
Analysts have said that a larger-than-expected selldown from former parents Pfizer and GSK is one of the big risks for the shares
The bank has a 347p share price target on the Sensodyne, Panadol and Centrum owner
Haleon's rejection of GSK and Pfizer's request for indemnification impressed analysts at UBS, who said this should allow the focus to return to the spun-off consumer healthcare group's "compelling prospects"
The consumer healthcare group had lost around a quarter of its value since listing in mid-July
Full-year revenue and profit margin guidance was unchanged and the group also reiterated medium-term guidance
After debuting at 330p in mid-July with a £30.5bn market cap, the shares hit a Zantac-inspired low just above 241p earlier this month
“[Haleon’s] premiere trading update delivered a good set of numbers but more importantly, a solid first building block as the new management team sets out to build a track record of delivering on their guidance,” said Jefferies in a note to
The former GSK consumer health business listed in both London and New York last week and is valued at just under £30bn
The analysts said the company has "a strategic optionality offering a floor to valuation"
Prior to the demerger Unilever made a £50bn takeover bid for the business, which is now trading at less than £30mln
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At the close, the UK blue-chip index was 73.04 points, or 1.0% higher at 7,296.28, below the session peak of 7,308.99 but well above the early low of 7,174.40
The new business was formed from consumer healthcare assets owned by the UK drugs giant, Pfizer and Novartis
It is anticipated to have an equity value north of £33bn, which will place safely it in the top quarter of the FTSE 100