Shares of Procter & Gamble have experienced a post-earnings reset and are now primed for upside, according to RBC Capital Markets. Analyst Nik Modi upgraded shares of the consumer goods giant to outperform from sector perform and lifted his price target by $13 to $177. His new forecast suggests the stock can add nearly 11% from Thursday’s close. “Everyone has a price threshold, and we have reached it for PG. While the quarter had its challenges, we believe this was a clearing event for PG, materially cutting numbers while protecting investments needed for sustainable long term growth,” Modi wrote in a Friday note to clients. “We acknowledge there are still a wide range of outcomes for 2025/2026, but we think investors should take advantage of PG’s pull back especially in this market.” P & G on Thursday reported quarterly earnings that beat estimates, but revenue that disappointed, leading shares lower. The company, which owns Charmin and Gillette, cut its forecast for its full-year core earnings per share and revenue, citing a consumer slowdown and President Donald Trump’s tariffs as the reason for its dimmer outlook. Potential price hikes tied to the tariffs would occur in the next fiscal year, P & G’s CEO told CNBC. The stock is down 6.5% this week after the company’s earnings were released. PG 1Y mountain P & G stock performance over the past year. But Modi still came away from P & G’s report with greater conviction in the company’s long-term outlook. “We were expecting this earnings seasons to be a difficult one. However, we were looking for companies to reset numbers substantially and we believe PG’s revised guidance embeds assumptions that are realistic and achievable,” he said. “In short, we are believers of the PG strategy and believe it has the right management team and capabilities (innovation, supply chain flexibility, RGM) to deal with the complexity and dynamic nature of the environment.” Modi pointed out that although destocking caused part of the previous quarter’s weakness, P & G’s shipments were in line with consumptions in March. He also said that P & G can return to more balanced organic growth in a profitable manner, and that its current price tiers, greater innovation and value messaging compared to the previous 2008 to 2009 economic downturn makes the company better positioned to confront macroeconomic pressures. “While market share gains have slowed, we still expect PG to be a net share gainer going forward,” Modi said. Wall Street remains optimistic on P & G. Of the 29 who cover it, 18 rate it a buy or strong buy, while 11 rate it a hold, per LSEG. The average analyst price target also suggests nearly 12.1% upside. Get Your Ticket to Pro LIVE Join us at the New York Stock Exchange! Uncertain markets? Gain an edge with CNBC Pro LIVE , an exclusive, inaugural event at the historic New York Stock Exchange. In today’s dynamic financial landscape, access to expert insights is paramount. As a CNBC Pro subscriber, we invite you to join us for our first exclusive, in-person CNBC Pro LIVE event at the iconic NYSE on Thursday, June 12. Join interactive Pro clinics led by our Pros Carter Worth, Dan Niles, and Dan Ives, with a special edition of Pro Talks with Tom Lee. You’ll also get the opportunity to network with CNBC experts, talent and other Pro subscribers during an exciting cocktail hour on the legendary trading floor. Tickets are limited!
