The consensus price target for NYSE:PG has seen fluctuations, with a recent adjustment to $165, indicating a cautious outlook from analysts.
P&G has outperformed its peers but faces a critical Q1-25 earnings event, with concerns over missing topline estimates and weak organic growth.
Despite challenges, projected Q1 2025 revenue and earnings per share surpass consensus estimates, highlighting the company’s resilience and potential for growth.
The Procter & Gamble Company (NYSE: PG) is a prominent player in the consumer goods industry, with a rich history dating back to 1837. Headquartered in Cincinnati, Ohio, P&G operates through five main segments, including Beauty, Grooming, Health Care, Fabric & Home Care, and Baby, Feminine & Family Care. The company boasts a diverse portfolio of well-known brands such as Head & Shoulders, Gillette, Crest, Tide, and Pampers. P&G distributes its products through various channels, including mass merchandisers, e-commerce, and grocery stores.
The consensus price target for P&G has shown some fluctuations over the past year. A year ago, the average target was $164.5, which increased to $171.38 last quarter. However, the target has recently adjusted to $165, indicating a slight decrease from the previous quarter. This suggests a more cautious outlook from analysts, possibly due to market conditions or company-specific factors, as highlighted by Lee Munson on CNBC’s ‘The Exchange’.
Despite the recent decrease in the average price target, P&G has outperformed its large-cap staple peers throughout 2024. However, the company is approaching a critical Q1-25 earnings event that could significantly impact its future performance. P&G has missed its topline estimates for the past three quarters, and the trend of weak organic growth may persist in Q1 due to a challenging base. Analyst Jason English from Goldman Sachs has set a price target of $143 for PG, reflecting a more conservative outlook.
P&G is set to announce its fiscal Q1 2025 results on Friday, October 18, with projected revenue of $22.1 billion and earnings of $1.92 per share. These figures surpass the consensus estimates, which forecast revenue of $21.96 billion and earnings of $1.90 per share. Despite this positive outlook, the company’s largest product segment, Fabric Care, is not performing optimally, and its second-largest market, China, is expected to encounter difficulties.
Investors should consider these target price trends alongside other financial metrics and market conditions when evaluating Procter & Gamble’s stock. The company’s strong brand portfolio and global presence continue to make it a significant player in the consumer goods industry. However, the recent price target set by Goldman Sachs at $143 suggests a more cautious approach, highlighting the importance of considering both short-term challenges and long-term potential.
