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Procter & Gamble: Analysts’ Recommendations before Q1 2019

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Ratings and target price

Wall Street analysts are maintaining a neutral outlook on Procter & Gamble (PG) stock. Of the 24 analysts tracking PG stock, 17 analysts recommend a “hold” rating, six analysts suggest a “buy,” and one analyst recommends a “sell.” Analysts have a consensus target price of $84.08 per share on PG stock, which indicates an upside of 3.2% based on its closing price of $81.44 on October 10.

Wall Street analysts also have a neutral outlook on the majority of consumer packaged goods manufacturers. Analysts expect their top lines to remain weak in the near term, reflecting increased competition and lower pricing. Margins could decrease due to ongoing inflation in commodities and shipping costs. Weak sales and margin headwinds are expected to hurt these companies’ bottom-line growth and restrict their upside.

In addition to their recommendations for Procter & Gamble stock, the majority of analysts also recommend a “hold” on Kimberly-Clark (KMB), Clorox (CLX), and Colgate-Palmolive (CL).

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Valuations

Procter & Gamble’s (PG) current valuation could be another factor that could stall its upside. PG stock trades at 18.6x its estimated EPS of $4.39 for fiscal 2019, which is expensive considering the projected growth rate of 4.0% in that period.

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