London, Jan 24, 2026, 09:10 GMT — The market has closed.
- Haleon shares closed Friday 0.45% higher following a broker upgrade
- Barclays upgraded Haleon to “overweight” and boosted its target price
- Focus shifts to U.S. momentum and the upcoming batch of corporate earnings
On Friday, Barclays upgraded Haleon to “overweight” and raised its price target, putting the London-listed consumer health company in focus heading into next week. The shares closed up 1.70 pence, or 0.45%, after fluctuating between 377.8p and 384.8p, with around 16.9 million shares changing hands, according to Hargreaves Lansdown. Barclays kept a neutral stance on the broader consumer staples sector but also raised L’Oréal and reaffirmed “overweight” ratings on Unilever and Reckitt. (Hargreaves Lansdown)
The U.S. remains a crucial market for Haleon, with Barclays noting signs of improvement in the region. The bank highlighted that roughly 35% of Haleon’s revenue comes from the U.S. and said drugstore inventory reductions—known as “destocking”—should mostly wrap up by the end of Q4. Barclays projects 1.5% organic sales growth in the U.S. by 2026, warning that forecasts above 2% may be too optimistic following a weak cold-and-flu season. (Investing)
Traders will be sizing up that kind of detail on Monday after a session that kicked off strong but soon lost its footing. A broker upgrade can attract quick money, yet it also sets higher expectations for the next update.
Haleon has long been seen by some investors as a defensive play, the kind you lean on when growth is hard to find. But that case weakens if the U.S. market remains sluggish or pharmacy channels stay more disorganized than anticipated.
In the short term, it’s also a cash story. If the U.S. steadies and execution improves, chatter shifts toward buybacks, dividends, and how fast companies can reduce leverage—not just toothpaste and pain relief sales.
There is a downside risk. Should respiratory demand stay weak or U.S. retailers continue slashing inventory through early 2026, the boost from “easy comparisons” could vanish quickly, putting pressure on margins instead.
Investors will be watching closely to see if other brokers climb alongside Barclays or resist the move. Upgrades in consumer staples seldom happen solo for very long.
Haleon’s preliminary full-year results land on Feb. 25, marking the next major catalyst. The company plans to reveal more on the operating-model revamp it announced earlier this month. CEO Brian McNamara said the overhaul aims to make Haleon “simpler and more agile and efficient.” (Haleon)
