Investing.com – Evercore ISI reiterated an In Line rating and $170 price target on on Monday, citing commodity pressures and detergent market positioning.
The firm noted commodity pressures have built, particularly through Procter & Gamble’s exposure to oil-derived inputs in Fabric & Home. These headwinds flow through cost of goods sold with a two-quarter lag, creating margin pressure into fiscal 2027.
Evercore ISI said Procter & Gamble enters this period of input-cost volatility from a structurally stronger footing in U.S. detergents, as the Tide intervention 6x Boosted is already stabilizing volume and dollar share at levels meaningfully higher versus 2019 and the onset of the 2022 commodity cycle. The firm said Procter & Gamble is not out of the woods yet, still losing fractional share on both a volume and dollar basis at the corporate level, and end-market volumes remain soft.
The firm said U.S. detergents, one of Procter & Gamble’s largest profit pools, appears well positioned within a setup supportive of constructive pricing and share stabilization. Value and mid-tier players Church and Henkel face greater commodity exposure, and Henkel signaling a strategic shift toward haircare may recreate a 2022-like backdrop where competitors lead price increases, allowing Procter & Gamble to follow with less elasticity risk.
In other recent news, Procter & Gamble reported fiscal second-quarter earnings per share of $1.88, surpassing consensus estimates by about 1%. This earnings beat was attributed to favorable selling, general, and administrative expenses and other below-the-line items. UBS responded by raising its price target for the company to $170, maintaining a Buy rating. Similarly, Wells Fargo adjusted its price target to $165, citing the company’s results as meeting expectations and suggesting potential for improvement in the latter half of the fiscal year.
Erste Group recently upgraded Procter & Gamble to a Buy rating, having previously downgraded it to Hold due to limited upside potential. The company has kept its sales growth forecast for the current financial year at 1-5% year-over-year, with expected earnings per share growth of 1-6% over the same period. In other developments, Jefferies advised investors to consider consumer staples stocks, including Procter & Gamble, as gas prices have exceeded $3.50 per gallon, a level historically linked with temporary slowdowns in the sector. These recent developments provide investors with insights into Procter & Gamble’s current market positioning and future prospects.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.