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What Analysts Are Suggesting for Procter & Gamble Stock

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Analysts have raised their target prices

Procter & Gamble (PG) has reported strong a fiscal 2019 first-half performance, following which several analysts have raised their target prices on its stock. Procter & Gamble’s underlying sales are expected to benefit from higher pricing and mix. Meanwhile, share buybacks, a lower tax rate, and productivity savings are expected to support the company’s bottom line. However, weakness in its margins and a heightened competitive landscape are likely to remain a drag. The following analysts recently raised their target prices on PG stock:

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  • JPMorgan Chase increased its target price to $107 from $106.
  • Berenberg upgraded PG to a “hold” from a “sell” and increased its target price to $92 from $86.
  • Jefferies increased its target price to $98 from $94.
  • Stifel increased its target price to $95 from $93.
  • Morgan Stanley increased its target price to $107 from $106.
  • UBS increased its target price to $95 from $87.

Most analysts remain on the sidelines

The majority of analysts covering Procter & Gamble stock remain on the sidelines, as cost headwinds and increased competition are likely to restrict the company’s upside. Among the 24 analysts providing recommendations on PG, 15 have given it “holds,” and nine have given it “buys.” Analysts have a consensus target price of $97.38 per share on PG stock, ~2% lower than its closing price of $99.24 on February 13.

Analysts also remain on the sidelines for other major CPG stocks, including Kimberly-Clark (KMB), Colgate-Palmolive (CL), the Clorox Company (CLX), and Church & Dwight (CHD).

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