UBS says early flu pick-up could lift 2027 earnings at Reckitt and Haleon
UBS predicts an early flu rise could boost 2027 earnings for Reckitt (RKT) and Haleon. Cough, cold, and flu products contribute significantly to their profits. UBS sets a 7,600p price target for Reckitt, suggesting 39% upside. Early data show rising flu incidence in the US, UK, and Germany, potentially lifting sales growth and earnings.
How this was made
The 30-second read
Why it matters
The new guidance raises expectations for 2027 earnings, providing a fresh catalyst for both stocks.
Market read
The article introduces new 2027 earnings forecasts for Reckitt and Haleon, offering a modest bullish catalyst for both stocks.
What to watch
Potential supply chain constraints or regulatory changes in the pharma segment could offset the projected earnings boost.
Background
UBS analysts project that an early rise in flu cases will boost sales of cough, cold and flu products, which have higher profit margins for both Reckitt and Haleon.
Ticker impact
UBS raises Haleon to buy with a 23.3p EPS forecast for 2027, suggesting a 2% earnings beat.
moderate upward pressure as the market digests the higher 2027 guidance
The forecast is a new data point that could improve investor sentiment toward Haleon.
Market effects
Consumer health and consumer goods sectors may see modest uplift expectations tied to flu season dynamics.
UK and US markets could react to the upgraded forecasts for two listed consumer companies.
Limited to the two companies; broader market impact is minimal.
Counterpoint
If flu incidence eases again, the upside could be overstated, leading to a price correction.
Key entities
- analystUBS
Swiss investment bank providing the earnings outlook.
- companyReckitt Benckiser Group PLC
Consumer goods group with a 7,600p price target.
- companyHaleon
Consumer health group with a 23.3p EPS forecast.
