Procter & Gamble (PG) Stock: $175 Price Target And Buy Rating

By Amit Chowdhry ● Mar 28, 2022
  • The shares of Procter & Gamble (NYSE: PG) have received a $175 price target from Truist. These are the details.

The shares of Procter & Gamble (NYSE: PG) have received a $175 price target from Truist. And Truist Securities analyst Bill Chappell upgraded Procter & Gamble from a “Hold” rating to a “Buy” rating while increasing the price target from $165.

Chappell noted that in the 24 months prior to the pandemic, the company began to see the benefits of its multiyear cost-cutting program, divestiture of 100+ brands, worldwide reorganization, and innovation revamp program pay off. 

“The company had four consecutive ‘beat and raise’ quarters and the stock increased more than 50% (vs -2.0% S&P500 in the 24 months prior to March 2020). Once the pandemic hit, the company continued to put up strong numbers. However, virtually every one of its consumer staples peers also delivered strong numbers. The pandemic-related consumer behavior made it increasingly difficult to see who won or lost, or how much of the boost was temporary vs. sustainable. While the end markets did deflate when lockdowns ended, the altered consumer behavior was extended into 2021 with the arrival of the Delta and Omicron variants of COVID-19. We note that since the start of the pandemic (March 1, 2020 for investment purposes) P&G’s stock has been up 23%, only slightly ahead of the consumer staples index (XLP) performance of 20% and well below the S&P 500 performance of 39%,” wrote Chappell in a research note. “As the consumer behavior patterns return to a ‘new normal,’ investors will once again be able to see PG’s operating momentum, and we believe the stock will therefore restart its period of outperformance.”

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