P&G's Marketing Strategies Face Scrutiny as Bernstein Raises Price Target
Procter & Gamble's (P&G) marketing strategy has come under scrutiny from analysts at Bernstein, who raised their price target on the stock to $149.00 while maintaining a Market Perform rating.
The firm noted that P&G spent $53.1 billion in marketing between 2021 and 2026 to sustain consumption levels, with an average annual growth of 4.5% despite flat volumes.
According to Bernstein, sustaining historical levels of marketing effectiveness is becoming increasingly challenging, and improving media return on investment is necessary for unlocking growth without compressing profit margins.
The transition from linear TV to social media has not fully happened and will continue to play out over the next several years, with P&G's historic sources of advantage in advertising being diluted in this new environment.