RBC Keeps Haleon at Sector Perform After Q3 Trading Update

08:18 AM EST, 11/11/2026 (MT Newswires) -- RBC Capital Markets retained its sector perform rating on Haleon (HLN.L) amid its view that the British consumer healthcare company is "not doing a lot wrong operationally" as it took into account the third-quarter results. "The savaging of Haleon's share price following the recent 3Q trading statement illustrated just how unimpressed investors were that Haleon is to miss its sales growth target for the second year in a row. The problem, in our view, isn't that Haleon is doing much wrong operationally - pricing hasn't been excessive, marketing investment is not being cut - but rather that the guidance is excessive and expectations' management has been clumsy," the research firm said Wednesday, noting that it decided against downgrading its recommendation on the stock. "The solution, we think, lies in a resetting of guidance, however injurious that is to management's self-esteem, and a rethinking of the remuneration structure, so that sales growth is afforded appropriate recognition." Analysts believe Haleon should lower its organic sales growth guidance to a "more realistic" range of 2.5% to 4.5% from 4% to 6%, instead of the company continually missing inflated expectations. With these in mind, RBC revised its earnings forecasts, including a 60 basis-point decline in operating margin projections for 2027 and 2028. The stock's price target, meanwhile, was bumped up to 3.40 pounds sterling from 3.10 pounds.