Procter & Gamble Company (NYSE:PG) shares climbed Wednesday after UBS upgraded P&G to a Buy rating on Wednesday after having the household products giant slotted at Neutral. The firm thinks concerns about downward earnings revisions are overstated.
"P&G has been the worst performing stock across our [home and personal care] coverage universe YTD, which is partially due to the unwind in the group but also concerns around the ability for P&G to deliver outsized EPS growth/positive revisions looking ahead," noted analyst Peter Grom.
Grom and team sees a higher likelihood that consensus estimates on Procter & Gamble are increased in 2023 than lowered more.
On a valuation look, P&G was noted to be trading below its historical five-year level.
Earlier this month, P&G was listed among other strong stocks at “buy” were among new initiations, each at Buy at CITI. Equity analyst Filippo Falorni expects each of the names to remain resilient amidst an uncertain macro environment, with valuations remaining attractive.
“We believe PG’s strategic changes implemented over the past few years have driven a sustainably higher organic topline growth outlook and put the company in a better position to navigate through a challenging macro environment,” he told clients. “We also believe the market disappointment post FQ2 results offers an attractive entry point.”
Shares of Procter & Gamble moved up 16 cents in early Wednesday trading to $137.72 following the UBS ratings lift.
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