Haleon share price has stalled: is HLN a good buy now?


Haleon (LON: HLN) share price has moved sideways in the past few days as GlaxoSmithKline (GSK) continued selling stake in the company. The shares also reacted mildly to the latest corporate earnings, which came earlier this month.

Haleon is doing well

Haleon is a leading company that provides services like oral health, vitamins, minerals and supplements, respiratory, pain relief, and digestive health products. It is one of the biggest consumer health companies in the world with a market cap of over 31.97 billion pounds. Some of the top brands are Sensodyne, Parodontax, Centrum, and Panadol among others.

Haleon published strong financial results in May. The earnings showed that its revenue jumped by 13.7% in the first quarter. Its organic revenue jumped by 9.9% while its operating profit jumped by 34% to over £627 million. Its adjusted operating profit rose by 9.5% to £691 million as costs jumped. The company expects that its organic growth will be towards the upper end of the 4.6% range. 

Haleon’s growth was helped by respiratory growth of 39% to over £510 million followed by 14% growth by over £724 million. Digestive health revenue rose by 11.9% to over £536 million. In a statement, the company’s CEO said:

“The new year has started well, and I am particularly pleased that we delivered a healthy balance of positive volume mix and price in the first quarter; demonstrating the strength of the brand portfolio combined with exceptional execution across our markets.”

Haleon share price has moved sideways after GlaxoSmithKline started selling its stake in the company. On Friday, the company sold 240 million shares for about $1 billion. GSK and Pfizer, which holds stake in the company have agreed not to sell shares for 60 days.

Haleon share price forecast

HLN chart by TradingView

The 4H chart shows that the HLN stock price has done well in the past few months. It has jumped by more than 43% from the lowest level in September 2022. The stock has moved above the key resistance point at 335.90p, the highest point on February 20th. It also retested the same point while the Relative Strength Index (RSI) and the Stochastic RSI drifted upwards.

Therefore, there is a likelihood that the Haleon share price will rise to the key resistance point on 356.75p, its all-time high. A move below the key support at 335.90p will invalidate the bearish view.

The post Haleon share price has stalled: is HLN a good buy now? appeared first on Invezz.

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