 Haleon seen growing after wobbly start -- Market TalkSource: MF Dow Jones (English)Original article published on Dow Jones English Newswire, translated by editorial staff Il Sole 24 Ore Radiocor.(Il Sole 24 Ore Radiocor Plus) - Milan, Dec 11 - Haleon is expected to start seeing a smoother growth path after facing several challenges since its IPO, Jefferies analysts write in a note after updating their rating on the stock to buy from hold.The 2025 results of the consumer-healthcare sector should at least be in line with expectations, thanks to better and less volatile sales growth, according to Jefferies analysts.Haleon's strategy - which has not yet been employed due to pandemic disruptions and soaring production factor costs - appears to be rekindling with the group's increased engagement in new combined category exposures, they add."Haleon is our favourite name in the consumer health industry, with more predictable and consistent results in both revenue and earnings," they add.Shares are up 0.5% to 326.3 pence.(michael.susin@wsj.com)(END) Dow Jones NewswiresDecember 11, 2023 03:50 AM ET (08:50 GMT)Copyright (c) 2023 Dow Jones-Radiocour |
May I ask whether anyone thinks this is worth buying or even holding excluding the acknowledged defensive qualities given the valuations and share overhang? aND IF SO WHY.
All I could see from the update was that profits were hit by a reversal in currency to a headwind rather than a following one resulting in poorish revenues and a small drop in reported profits for Q3 (rather than adjusted ones)..I am aware that GSK has sold some stock but Pfizer still has a massive position while some more conservative US funds or ETFs have been buying presumably because it is big ($30bn) and steady. But Haleon also has pretty big debts at a time of higher rates though I am sure most are term rather than imminent. |
I see the update as pretty good.
Revenue for the 9 months is £8,536m against £8,080m.
Diluted eps is 11.3p against 9.3p.
...Our FY guidance remains unchanged and we expect to deliver strong growth in both organic revenue and adjusted operating profit constant currency... |
I thought this looked like a good update, what's not to like about it. |
Re. today's RNS - What is the difference between Scottish and English limited partnerships? Under the Partnership Act 1890 Scottish firms are legally separate to their partners. This means that Scottish limited partnerships (SLPs), unlike those based in England and Wales or Northern Ireland, have 'legal personality', allowing them to hold assets and enter into contracts in their own right.
........I did not know that. |
Well supported ?Well said. |
Seeming quite well supported. Holding demerged tranche plus some bought after the initial fall in the 250s. |
Not a very active thread. HLN may be worth a look? |
But why are the shares crashing |
Outlook guidance raised:
For FY 2023 the Company now expects:
Organic revenue growth to be 7-8%. This compares with "towards the upper end of the 4-6% range" as shared in the Q1 Trading Statement on 3 May 2023.
Adjusted operating profit growth to be 9-11% constant currency |
Consumer health stocks show their defensive qualities
Steady growth and pricing power make companies such as Haleon look attractive |
GSK PLC GSK completes sale of shares in Haleon plc
Further to the announcement by GSK on 11 May 2023, GSK has agreed to sell 240m ordinary shares in Haleon plc (" Haleon ") at a price of 335 pence per share (the " Placing Shares "), raising gross proceeds of approximately GBP804m (the " Placing ").
Following settlement of the Placing, GSK will hold 955m(1) ordinary shares in Haleon, representing approximately 10.3% of the issued share capital of Haleon.
GSK and Pfizer Inc. (which holds a 32% stake in Haleon), have each undertaken not to dispose of any further shares in Haleon for a period of 60 days following settlement of the Placing, subject to certain customary exceptions and waiver by BofA Securities. |
The Times last week thinks that it may be overvalued despite its cash generation that will reduce its debt. FWIW |
Well I suppose I am glad it’s not a bad set of results |
Yes, quite happy with that.
Happy to hold long term.... |
Fairly good statement. |
Nicely timed for a change! |
Closing high. GSK perking up a bit too. |
I'm in from this morning, I like the look of this! |
Good to see another connected person purchase. |
Haleon issued bonds at demerger, luckily before interest rates increased, I understand the USD long dated bonds are selling at a big discount, so in theory can use £2B cashflow to buyback, any thoughts from others best use of cashflow. Dividends or buy back Bonds?. |
Reasonable vote of confidence by Lewis. |
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