On Monday, Stifel, a financial services firm, adjusted its outlook on shares of Procter & Gamble (NYSE:PG), a leading consumer goods company. The firm increased the price target to $161 from the previous $157 while maintaining a Hold rating on the stock.
The adjustment comes as the analyst at Stifel considers the shares to be fairly valued at the current level, but sees fit to raise the price target slightly to $161. This stock new target is based on 16 times the forecasted 2026 earnings before interest, taxes, depreciation, and amortization (EBITDA).
Procter & Gamble's initial guidance for fiscal year 2025 is expected to align with the company's long-term goals. This includes aiming for organic sales growth that surpasses the global market's pace, which is currently at a low single-digit rate. The company's target range is approximately 3% to 5%, compared to a market growth consensus of 4%.
Moreover, Procter & Gamble is anticipated to achieve a mid-to-high single-digit growth in earnings per share (EPS), which aligns with the consensus estimate of 6%. For the near term, the analyst predicts that the fourth quarter of fiscal year 2024 will mirror the organic sales growth seen in the third quarter, which was around 3%. This growth is supported by solid volume increases in most markets.
Still, the report also indicates that Procter & Gamble is likely to face continued weakness in Mainland China, where sales dropped by 10% in the third quarter of fiscal year 2024. This trend is expected to persist for one to two more quarters. The impact of pricing on sales is projected to diminish going forward.
In other recent news, Procter & Gamble has seen a series of noteworthy developments. Deutsche Bank (ETR:DBKGn) has raised its target for the company to $176, citing its continued market share expansion despite mixed market signals. The firm projects Procter & Gamble's fourth fiscal quarter of 2024 earnings per share to be in line with market consensus at $1.37, reflecting stable margins and bottom-line results.
The company has also announced a quarterly dividend of $1.0065 per share, marking the 68th consecutive year of dividend raises. This move aligns with the company's consistent financial practice of returning cash to shareholders.
In addition, Procter & Gamble is set to launch over 30 brand campaigns inspired by the Olympic and Paralympic Games, providing products and services for athletes at Paris 2024. This initiative forms part of the company's strategy to connect its products with high performance, a theme synonymous with the Olympics.
Congressional representative Lloyd Doggett from Texas's 37th district has purchased shares in Procter & Gamble, suggesting confidence in the company's future performance. Meanwhile, Argus has upgraded its Procter & Gamble shares target, citing innovations like Dawn Powerwash and the company's potential for long-term earnings growth. These are just a few of the recent developments surrounding Procter & Gamble, indicating a dynamic period for the company.
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