Buy Rating Affirmed for Procter & Gamble Amidst Short-Term Challenges and Strong Execution

Filippo Falorni, an analyst from Citi, reiterated the Buy rating on Procter & Gamble (PG – Research Report). The associated price target remains the same with $177.00.

Filippo Falorni has given his Buy rating due to a combination of factors, including Procter & Gamble’s (PG) consistent execution and market share gains despite facing short-term headwinds. While acknowledging challenges such as softness in China and inventory reductions in the United States, Falorni sees these as temporary issues. He notes that Procter & Gamble has still managed to deliver solid margin and EPS figures, even raising its FY24 EPS guidance. This resilience, paired with strong volume and share growth in the US and Europe, underpins the rationale for the Buy rating.
Furthermore, Falorni anticipates that the headwinds affecting PG’s organic sales growth (OSG) will subside, particularly as the impacts on the SK-II brand in China are expected to cycle through. With expectations set for a recovery to an OSG of around 4-4.5% from F2Q25 onwards, Falorni maintains a positive outlook on the company’s performance. The increase in the FY24 EPS estimate to $6.55 reflects confidence in Procter & Gamble’s strategic execution and ability to navigate external pressures, underscoring the Buy recommendation.

In another report released on April 19, Barclays also assigned a Buy rating to the stock with a $168.00 price target.

PG’s price has also changed slightly for the past six months – from $148.250 to $158.140, which is a 6.67% increase.

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Procter & Gamble (PG) Company Description:

Procter & Gamble Co. manufactures and sells branded consumer packaged goods across five segments: Beauty; Grooming; Health Care; Fabric & Home Care; and Baby, Feminine & Family Care. Some of the popular brands owned by the company include Head & Shoulders, Pantene, Olay, Gillette, Oral-B, Vicks, Ariel, Tide, Pampers, Luvs and Bounty. The company was founded by William Procter and James Gamble in 1837 and is headquartered in Cincinnati, OH.