Evercore ISI Upgrades Procter & Gamble Rating on Strong Sales Outlook
Evercore ISI has upgraded its rating for Procter & Gamble (P&G) from In Line to Outperform, raising its price target to $166.00. The firm also increased its first-quarter fiscal 2027 organic sales growth estimate to approximately 3%, up from 2%, and expects the company to exit fiscal 2027 with around 4% growth. This 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 is now $0.02 above consensus.
The upgrade comes as Evercore ISI believes the upcoming first quarter likely marks the end of downside risk to P&G’s sales. The firm noted that oil and logistics cost pressures were not factored into the company’s guidance. The new price target of $166 represents a 14% premium to the stock’s closing price before the upgrade and 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. InvestingPro subscribers have access to over 10 additional exclusive tips for P&G, including insights on the company’s 42 consecutive years of dividend increases.
In other recent news, 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. 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.