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Procter & Gamble “stays the course”, say Deutsche Bank, Jefferies analysts

Published 11/23/2024, 04:56 AM
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Investing.com -- Procter & Gamble (NS:PROC) Company (NYSE:PG) share were up 2% at $176 on Friday, y after the consumer goods giant reaffirmed its strategy and fiscal 2025 guidance during its Investor Day in Cincinnati. Analysts at Deutsche Bank (ETR:DBKGn) and Jefferies said the company remained on a steady course, with no major surprises from the event—a development Deutsche Bank called a positive.

P&G reiterated its commitment to its long-standing "superiority" strategy, focusing on enhancing product efficacy, packaging, brand communication, retail execution, and value. These efforts, combined with steady innovation and an agile organization, have solidified the company’s leadership in the sector, often serving as a model for competitors, Deutsche Bank noted.

“P&G may not be immune to the buzz of the day (tariffs, ingredients), but they showcased a flexible supply chain,” Jefferies analyst wrote in the note

The company maintained its fiscal 2025 organic growth forecast of 3-5%, despite headwinds like recent U.S. dollar fluctuations. P&G cited confidence in resilient growth in core markets such as the U.S. and Europe, along with potential stabilization in China and the Middle East, as the basis for its outlook.

Deutsche Bank highlighted quarter-to-date growth for Chinese brands SK-II and Pantene, as well as strong performance in Pampers. It also praised P&G’s Supply Chain 3.0 initiatives, which are expected to drive top-line growth, cost efficiency, and improved cash conversion.

Deutsche Bank reiterated its "buy" rating and $181 price target, citing P&G’s consistent execution and solid growth outlook. While Jefferies has a price target of $174

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