The firm believes the consumer goods company’s revenues might improve over the coming years
Published By: Angela Campbell on June 15, 2016 02:22 pm EST
Jefferies has initiated coverage on Procter & Gamble Co. (NYSE:PG) stock today with a $95 price target and Buy rating. The firm believes the company’s revenues will improve.
Analyst Kevin Grundy at the firm said that owing to the company’s improved focus on categories and due to its cut down portfolio, its organic sales could return to 3.5% growth by fiscal year 2018, at par with the overall industry, but about 3% ahead of estimates. “An inflection in org sales and EPS upside (+2% FY17/18 vs. Street) are likely catalysts to restore PG's premium multiple (> 15% TSR over the NTM) with dividend yield support in the low-$70s,” he added.
Headquartered in Ohio, and established in 1837, Procter & Gamble is a $223 billion consumer goods multinational company. Both the founders of the company, William Procter and James Gamble, were from the UK. P&G has five geographic business units: beauty, grooming, health care, Fabric Care & Home Care, and Baby Feminine & Family Care. The company earns from sales across 180 countries, and also has commercial consumers such as ecommerce companies, salons, department stores, drug stores, grocery stores, and merchandisers.
The analyst’s price target reflects 13.98% upside potential over the last closing price of the stock. The consensus, on the other hand, has a mean 12-month price target of $84.79, reflecting 1.73% upside potential over the last close. According to Thomson Reuters, there are five Strong Buy, five Buy, 11 Hold, and two Underperform ratings on the stock.