Evercore ISI lifts P&G rating on stronger sales outlook and growth prospects
Evercore ISI has upgraded its rating on Procter & Gamble (P&G) stock to Outperform from In Line, while raising its price target to $166. The firm also boosted its first-quarter fiscal 2027 organic sales growth estimate to approximately 3%, up from a previous forecast of 2%. This revision surpasses consensus expectations and suggests P&G will exit fiscal 2027 with around 4% growth, a rate Evercore ISI believes delivers operating leverage.
The upgrade marks the first top-line upside call on P&G by Evercore ISI in two years. The firm’s first-quarter earnings per share estimate now stands $0.02 above consensus. Evercore ISI also noted that the upcoming first quarter likely marks the end of downside risk to P&G’s sales, citing oil and logistics cost pressures that were not factored into the company’s guidance.
The new price target of $166 represents a 14% premium to the stock’s closing price on the day prior to the upgrade. This target aligns closely with the stock’s 52-week high of $167.25. According to InvestingPro analysis, P&G appears undervalued at current levels, with a Fair Value of $158, suggesting additional upside potential beyond Evercore’s target. The stock trades at a P/E ratio of 22 with a market capitalization of $339 billion.
In other recent developments, P&G has agreed to modify its advertising claims regarding the Braun Skin i-Expert IPL hair removal device following an investigation by Italy’s antitrust regulator. Meanwhile, Moody’s has upgraded its outlook for P&G to positive, citing the company’s strong cash flow and earnings growth driven by strategic pricing, innovation, and cost-saving measures. Additionally, Bernstein SocGen Group has raised its price target for P&G stock to $149.00, while RBC Capital has reiterated its Outperform rating on the stock.