UBS Reiterates Buy Rating on Procter & Gamble (PG)

UBS analyst Peter Grom reiterated a Buy rating and $180.00 price target on Procter & Gamble (NYSE: PG).

The analyst commented, "We think SYY showed signs of progress in 4Q, even with its share price pull back post print. Its top and bottom line guidance initially underwhelmed, but we believe both can largely be explained by one time issues, including 50 bps of sales pressure from the Mexico JV exit and $0.16 of EPS pressure related to normalized incentive compensation. Thus, SYY's underlying implied outlook of 2.5%-4.5% sales growth and 5%-7% EPS growth appears pretty reasonable when assuming a steady macro, and leaves room for upside if the industry sees improvement. Further, SYY's US local case volume continues to trend in the right direction. It sequentially improved by 200 bps relative to 3Q. Plus, it sequentially improved in each month of 4Q, and its momentum carried into July. We think a return to positive local case volume growth is likely for FY'26, especially when considering it's a year past its sales force compensation changes and its larger 2024 sales cohort is increasingly entering the 12-18 month productivity sweet spot. Longer term, we expect to see positive contributions from its structurally faster sales force growth relative to 2020-2023, its AI 360 CRM initiative, pricing agility, and its Perks 2.0 deployment."

For an analyst ratings summary and ratings history on Procter & Gamble click here. For more ratings news on Procter & Gamble click here.

Shares of Procter & Gamble closed at $156.61 yesterday.

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