Haleon PLC (LSE:HLN, NYSE:HLN) shares dropped slightly after Deutsche Bank reiterated its 'sell' rating on the maker of Sensodyne and Panadol, warning of changes in consumer trends that may show up in next month's results.
The bank's analysts trimmed their target price from 340p to 335p, well below the last close of 377.2p, saying the shares fail to reflect mounting risks from changing sales channels and weakening consumer trends.
They cited a shift in how consumers purchase over-the-counter health products, particularly in the US, will erode the FTSE 100 group’s margins over time.
Although recent gains in Haleon’s share price had been supported by favourable foreign exchange movements, particularly in emerging markets such as Russia and South Africa, this uplift may be temporary, the analysts said.
“FX gains have driven better than expected consensus figures, with the rally in currencies like the ruble and rand boosting EMEA LatAm margins,” they said, noting that Russia alone accounts for an estimated 3-4% of group EBIT.
Other concerns were flagged too, including a broader slowdown in search data for Haleon’s major brands, as well as softening demand in cold and flu categories.
This prompted a cut to earnings estimates by 0.7% and FY26 by 1.8%, leaving the bank 3.9% below consensus for 2026.