Truist raises Procter & Gamble target to $185, keeps Buy rating

Published 02/04/2025, 22:06
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On Wednesday, Truist Securities adjusted its outlook on Procter & Gamble stock (NYSE:PG), increasing the 12-month price target to $185 from the previous $180, while reaffirming a Buy rating on the shares. The revision by Truist Securities follows a detailed review of the company’s financial model at the end of the quarter.

The firm’s analyst issued a statement detailing the adjustments made to Procter & Gamble’s future financial projections. Specifically, the sales and earnings per share (EPS) estimates for fiscal year 2025 have been revised downwards to $85.06 billion and $6.90 respectively, from the earlier estimates of $85.87 billion and $6.95. Similarly, the forecast for fiscal year 2026 has been lowered, with sales now expected to reach $87.56 billion and EPS set at $7.33, compared to the previous estimates of $89.05 billion in sales and $7.43 in EPS.

Despite these reduced estimates, Truist Securities sees enough potential in Procter & Gamble to warrant a higher price target. The new target is based on the firm’s expectations for the company’s EPS in fiscal year 2026. This adjustment suggests that the firm remains confident in the long-term value and performance of Procter & Gamble, even as it recalibrates short-term expectations.

The announcement comes as investors continually assess the future growth prospects of Procter & Gamble. The company, known for its wide array of consumer goods, has a history of stable performance, which may contribute to the firm’s positive rating.

Truist Securities’ updated price target offers a perspective on the anticipated value of Procter & Gamble stock over the next year, taking into account the latest financial data and market conditions. As the market processes this information, Procter & Gamble’s stock performance will continue to be a focal point for investors monitoring the consumer goods sector.

In other recent news, Procter & Gamble has experienced a slow start to the current quarter, as reported by CFO Andre Schulten, amid market volatility and newly enacted tariffs. Despite these challenges, the company is maintaining its fiscal year guidance ranges but is prepared to support the low-end of these targets. In a positive development, Erste Group upgraded Procter & Gamble’s stock rating to Buy, citing the company’s strong operating margin and projected sales growth for 2025 and 2026. This upgrade reflects confidence in Procter & Gamble’s financial stability and growth potential. Additionally, Evercore ISI reiterated its Outperform rating for the company, emphasizing its strategic persistence despite economic pressures. Procter & Gamble’s Cascade brand has launched a new dishwasher detergent formula, Cascade Platinum Plus, designed to address common dishwashing issues without pre-rinsing. This product launch aligns with consumer trends towards increased home cooking. DA Davidson continues to maintain a Buy rating on Procter & Gamble, highlighting the company’s low direct tariff exposure but acknowledging potential external impacts.

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