Berenberg announced on Wednesday that it had initiated coverage of Haleon shares with a buy recommendation and a price target of 407 pence.

The analyst underpins his optimism with the US launch of Eroxon, a topical gel for male erectile dysfunction, which he believes should enable the group to post organic growth of 5.8% in 2025, compared with the current consensus target of 4.9%.

He also highlights Haleon's exposure to dynamic market segments, where the Group should generate growth of 4.6% in the medium term, above the 4.1% average expected for the sector.

Lastly, the intermediary points out that the share is currently trading at a 17% discount to other major manufacturers of household and personal care products.

At current prices, its price target shows a potential upside of around 25%.

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