Evercore ISI Upgrades P&G Stock on Stronger Sales Outlook

Evercore ISI has upgraded its rating on Procter & Gamble (P&G) stock to Outperform from In Line, citing an improved sales outlook. The firm also raised its price target to $166.00, representing a 14% premium over the stock's closing price before the upgrade. Evercore ISI now expects P&G's first-quarter fiscal 2027 organic sales growth to reach approximately 3%, up from a previous forecast of 2%. This adjustment aligns with the firm's view that the company will exit fiscal 2027 with around 4% growth, a rate that delivers operating leverage.

The upgrade marks Evercore ISI’s first top-line upside call on P&G in two years. The firm’s first-quarter earnings per share estimate is now $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, despite oil and logistics cost pressures not factored into the company’s guidance.

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. The company will no longer assert that the device keeps skin hair-free for two years, as the claims were deemed unsubstantiated. 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.

Bernstein SocGen Group has raised its price target for P&G stock to $149.00, highlighting the company’s significant marketing investments aimed at sustaining consumption levels. RBC Capital has reiterated its Outperform rating on the stock, noting a sequential improvement in the company’s U.S. market share. Additionally, Goldman Sachs reported that U.S. consumer staples sales, including categories relevant to P&G, showed minimal growth in the latest four-week period according to NielsenIQ.