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Investing.com - UBS has reiterated a Buy rating on Procter & Gamble (NYSE:PG) stock, maintaining its price target of $180.00.
The firm noted signs of progress in the company’s fourth quarter performance, despite a post-earnings share price pullback. UBS explained that initial top and bottom line guidance appeared underwhelming but attributed this largely to one-time issues. With a P/E ratio of 23.4 and revenue of $83.9 billion in the last twelve months, P&G continues to demonstrate its market strength. Get deeper insights into P&G’s valuation metrics and 12 additional ProTips with InvestingPro.
These temporary factors include 50 basis points of sales pressure from a Mexico joint venture exit and $0.16 of earnings per share pressure related to normalized incentive compensation, according to UBS.
The firm views the company’s underlying implied outlook of 2.5%-4.5% sales growth and 5%-7% EPS growth as reasonable in a steady macro environment, with potential upside if industry conditions improve. UBS highlighted that U.S. local case volume continues to trend positively, showing a 200 basis point sequential improvement relative to the third quarter.
UBS expects longer-term positive contributions from structurally faster sales force growth compared to 2020-2023, the company’s AI 360 CRM initiative, pricing agility, and its Perks 2.0 deployment.
In other recent news, Procter & Gamble reported its fiscal fourth-quarter 2025 earnings, surpassing analysts’ expectations. The company achieved an earnings per share (EPS) of $1.48, exceeding the forecasted $1.42, representing a 4.23% surprise. Revenue also outperformed projections, reaching $20.89 billion compared to the anticipated $20.81 billion. These developments highlight Procter & Gamble’s strong financial performance in the latest quarter. The results have been positively received by investors, as indicated by the stock’s movement in pre-market trading. Additionally, analyst firms have taken note of these results, though specific upgrades or downgrades were not mentioned in the recent reports. These earnings and revenue figures are crucial for investors assessing the company’s current standing. The company’s ability to exceed expectations demonstrates its operational strength in the current economic environment.
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