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Investing.com -- Evercore ISI downgraded Procter & Gamble (NYSE:PG) to In Line from Outperform on concerns that the consumer goods giant is losing ground in the fast-growing online retail space, particularly on Amazon (NASDAQ:AMZN).
According to U.S. scanner data, June sales rose less than 1%, and warned that Procter’s growth may fall short of the 4% needed to drive earnings leverage.
It now expects organic sales growth of just 1–3% for fiscal 2026, below the Street’s 2.4% consensus, and trimmed its EPS forecast to $6.90 from $7.00.
While Procter has remained strong with key partners like Walmart (NYSE:WMT) and Costco (NASDAQ:COST), it continues to underperform on Amazon, which now accounts for half of all growth in the U.S. home and personal care market.
Evercore noted Procter’s share on Amazon is about a third of what it enjoys with those two big-box retailers, highlighting gaps even in core categories like shampoo and shaving.
That underperformance, analysts wrote, stems from structural challenges.
Procter’s complex product portfolio and limited presence in high-growth online segments make it harder to compete with smaller, nimbler brands that flourish in Amazon’s marketplace.
The shift toward digital retail, especially in China, is also weighing on growth.
Evercore warned that a faster pivot to online and social commerce could extend pressures in that market, where Procter already faces headwinds.
A corporate reorganization is underway, but Evercore expressed doubt it would be enough to close the digital gap in the near term.
The firm lowered its price target to $170 from $180, assuming a valuation premium to peers but acknowledging risks from weaker online traction and softer domestic demand.