FoggyIsle.XYZ | Market's view on Haleon

HSBC has initiated coverage on Haleon with a ‘buy’ recommendation and a price target of 370 pence.
Stock watchers note Haleon’s share price is showing strength in a period of potential vulnerability due to the end of lock-up periods from recent placements.
The upsizing of an offer by 160 million shares is seen as a positive sign of institutional demand.
Concerns are raised about the ease of a takeover, especially if a large holder pre-agrees to sell. Haleon is viewed as a potential acquisition target in the future.
Stock watchers comment on Haleon’s low dividend yield and the influence of remaining stakes held by GSK and Pfizer on the share price.
Pfizer’s decision to reduce its stake in Haleon is highlighted.
Positive aspects noted include Haleon’s reduction in debt and decent financial figures reported.
The disposal of assets like Chapstick is seen as both a short-term benefit and a potential long-term revenue loss.
GSK’s continued sell-down of shares post-IPO and potential bids for these shares are discussed.
The stock price is supported by speculative takeover hopes despite perceived high price-to-earnings ratios and low yield.
Analysts foresee smoother growth for Haleon after initial post-IPO challenges, citing improved sales growth and strategic engagements.
The discussion includes concerns about Haleon’s valuation and the impact of large holdings by Pfizer, alongside issues related to high debt levels in a high-interest environment.
Revenue and earnings updates are generally viewed positively by some watchers, reaffirming guidance for strong growth.
Legal distinctions of Scottish limited partnerships compared to those in England, Wales, and Northern Ireland are noted, highlighting their ability to hold assets and enter contracts independently.