Haleon (HLN), mcap=$29bn, price $6.16 vs $2.59

$HLN pitch:
– A recent spin-off from $GSK – consumer healthcare products.
– The lock-up on 45% ownership by $PFE and $GSK expires on the 11th of Nov – this dynamic is pressuring shares and creating attractive entry opportunities.
– High-quality franchise with a leading portfolio of healthcare brands.
– Strong FCF generation with 60% gross and 23% EBIT margins.
– Attractive valuation on an absolute basis.
– Takeout target by strategic acquirers – an offer from $UL at a 67% premium to current prices was rejected in Jan’22.

$HLN valuation:
– Currently trades at 14.6x ’22 EPS and 13.5x ’23 EPS.
– Peer $PG is at 23x ’23 EPS.

Exp. gain: Not specified.

Full HLN write-up (free guest account required):

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