Haleon PLC (LSE:HLN, NYSE:HLN) has "achievable" sales targets but it may struggle to meet the market's expected level of profit margins, according to Barclays.
Analysts at the bank reiterated their "overweight" rating and 383p share price target.
Ahead of its AGM this Thursday and Q1 trading statement on 3 May, the analysts said with the Vuma consensus just released, and with the FTSE 100-listed company only having a limited track record as a separately listed company since being spun out of GSK last year, "we felt it was worth doing a quick run through where we see the upside and downside risks around numbers".
Barclays' forecast for organic sales growth of 5.5% is above the consensus forecast of 4.8%.
However, the analysts believe the average City forecast of 23.4% margins may be "a touch high", and predict margins will be down 100bps.
The topline is expected to be boosted by restocking and continued flu strength, offsetting 2% headwinds from order pull forwards in the prior period.
"Together with a tailwind from China reopening, this should offset drag from tough comps and VMS [vitamins, minerals and supplements] weakness.
"We think a solid topline performance in 1Q23e despite the tough comp would be another piece of evidence to convince long only investors of Haleon’s structural growth potential," the analysts said.