JPMorgan believes Procter & Gamble’s stock price could rise due to improved sales growth and expanded profit margins after the company’s weak performance over the past 12 months. The investment bank raised its rating on the Gillette razor and Tide detergent maker from neutral to overweight, and analyst Andrea Teixeira raised her 12-month price target to $165 from $157. Procter & Gamble’s stock price has fallen more than 10% over the past 12 months. Teixeira’s revised price forecast suggests an 11% increase from P&G’s Thursday closing price. PG 1Y Mountain P&G Stock Over the Past Year The analyst upgrade comes after Procter & Gamble reported fiscal second-quarter adjusted earnings of $1.88 per share, beating the $1.86 estimate of analysts surveyed by LSEG, despite revenue of $22.21 billion, below the consensus of $22.28 billion. “We believe the company is well-positioned to accelerate organic sales growth (OSG) and improve margins over the medium term, so we are likely to revert our valuation to historical valuation multiples,” the analyst said. Teixeira noted that P&G management’s positive tone on Thursday’s earnings call provided “much needed and much-needed reassurance” that the company is on track to improve organic sales growth to 2% to 3% in the second half of this year, up from zero in the second quarter. “(Original sales growth) increased +3% in markets outside the US, consistent with underlying growth, but in the US, it was down -2%, below the market due to shipment trends in the base period. Looking forward, management is confident that F2Q will be the lowest quarter of the year due to 1. a combination of difficult performance in the base period, and 2. the company’s potential share recovery, and F2H will accelerate.” Teixeira left his profit forecast unchanged for 2026, but raised his forecasts for 2027 and 2028. The analyst cited corporate restructuring as a catalyst, which should provide upside to current profit margins and reignite growth across the business. “While we acknowledge there is execution risk in recovering share, we have no doubts about PG given its large marketing budget and consistent AI investments that are likely to improve (return on investment) going forward,” she added.
