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Investing.com - TD Cowen lowered its price target on Procter & Gamble (NYSE:PG) stock to $168.00 from $175.00 on Wednesday, while maintaining a Buy rating following the company’s fourth-quarter results.
The firm cited a soft finish to the fiscal year due to category slowdowns in developed markets, share losses, and retailer inventory mix issues that impacted performance.
TD Cowen noted that Procter & Gamble’s fiscal year 2026 sales and earnings per share growth guidance of 0-4% reflects a wider-than-usual range of uncertainty and ongoing reinvestment requirements.
The new price target assumes a price-to-earnings valuation multiple of 22.6x against TD Cowen’s fiscal year 2027 earnings per share estimate, below the company’s five-year average of 23.6x.
The lower multiple accounts for higher macroeconomic uncertainty and weaker category growth trends, though TD Cowen expects the stock to outperform consumer packaged goods peers long-term as investments in product innovation materialize.
In other recent news, Procter & Gamble reported its fiscal fourth-quarter 2025 earnings, exceeding analysts’ expectations. The company achieved an earnings per share of $1.48, surpassing the forecasted $1.42, resulting in a 4.23% surprise. Revenue also outperformed projections, reaching $20.89 billion compared to the anticipated $20.81 billion. UBS has reiterated a Buy rating on Procter & Gamble stock, maintaining its price target of $180. The firm noted progress in the company’s fourth-quarter performance, despite initial guidance appearing underwhelming due to one-time issues. These developments reflect positive investor sentiment and ongoing confidence in Procter & Gamble’s financial health.
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