Procter & Gamble (PG) PT Raised to $177 at Morgan Stanley After Reporting Strong Results

Morgan Stanley analyst Dara Mohsenian raised the price target on Procter & Gamble (NYSE: PG) to $177.00 (from $161.00) after the company reported slight fiscal Q2 EPS upside and maintained FY EPS guidance.

The analyst reiterated an Overweight rating, stating "We think the market was enthused that robust PG topline and market share results are offsetting industry pressures from a cost/FX standpoint that are likely to drive negative EPS revisions at PG peers, as well as a sequential pricing acceleration at PG to +3% in FQ2 from +1% the prior two quarters. PG remains our favorite Household Products name and OW rated, with our belief that strategy changes from the last few years and recent reinvestment have resulted in a sustained topline acceleration to the MSD range, supported by PG market share gains, and PS has higher visibility than peers, neither of which is reflected in PG's HSD P/E discount vs. CL/CHD/CLX. Post Q2, we are raising our FY22/23 EPS by 1% and our price target by 10% to $177 (based on a 26x CY23 EPS) with increased confidence in PG prospects."

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