RBC Capital starts Haleon at ‘sector perform’

"We were leaning towards initiating at ‘outperform’, but on reflection Haleon's competitive position is less exciting than we had imagined," it said.

"Haleon has an adequate collection of brands and market positions which should enable the group to grow organic sales at the low end of its 4-6% guidance."

RBC said potential litigation liability over heartburn drug Zantac will act as a turnoff for staples investors, as will the overhang from Pfizer's and GlaxoSmithKline’s 32% and 5.4% shareholdings.