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JPMorgan downgraded Procter & Gamble Company (NYSE:PG) to a Neutral rating from Overweight just ahead of the household products giant’s FQ4 earnings report next week.
Analyst Andrea Teixeira said the firm is taking a pause because the team thinks Procter & Gamble’s (NYSE:PG) organic sales growth will remain soft for the next few quarters as the categories have decelerated.
On the positive side, JPMorgan trusts P&G management’s ability to continue to grow ahead of key categories and also sees upside from the recently announced efficiency program. However, the bull and bear case for the stock was called balanced at this point. It was also highlighted that Procter & Gamble (PG) has been vocal regarding weak underlying consumption in the U.S. and Europe, on top of the well-communicated challenges in China and other regions due to the Middle East conflict, with no visibility on the timeline of recovery in the interim.
JPMorgan established a December 2026 price target of $170 on Procter & Gamble (PG), which is based on a 50-50 blend of P/E at 23.6X and EV/EBITDA of 15.6X.
Shares of Procter & Gamble (PG) dipped 0.8% in premarket trading on Friday. The company is due to report earnings on July 29. Analysts expect revenue of $20.9 billion and EPS of $1.42 to be disclosed. P&G has beat EPS estimates in its last nine quarterly reports.
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