Evercore ISI upgrades Procter & Gamble to Outperform on improved sales outlook
Evercore ISI has upgraded its rating for Procter & Gamble 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 the previous 2% forecast. Evercore ISI expects the company to end fiscal 2027 with around 4% growth, a rate that delivers operating leverage. This upgrade is the first top-line upside call on the company from Evercore ISI in two years.
The firm's first-quarter earnings per share estimate now stands $0.02 above consensus. Evercore ISI believes the upcoming first quarter likely marks the end of downside risk to Procter & Gamble’s sales. The firm noted 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.
According to InvestingPro analysis, Procter & Gamble 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 Procter & Gamble, including insights on the company’s 42 consecutive years of dividend increases.
In other recent news, Procter & Gamble 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 Procter & Gamble 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 Procter & Gamble 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 Procter & Gamble, showed minimal growth in the latest four-week period according to NielsenIQ.