Procter & Gamble (PG) Reiterated Hold After Earnings at Stifel

Stifel analyst Mark Astrachan reiterated a Hold rating and $148.00 price target on Procter & Gamble (NYSE: PG) even leaving estimates virtually unchanged after F1Q22 results were essentially in line with expectations. The company reported 4% organic growth, in line with buyside expectations, with EBIT of $5.02bn consistent with consensus. Greater gross margin pressure came from than expected (gross margin down 370bps), offset by lower SG&A expenses (including an $81mm real estate sale gain). The company reiterated full-year F2022 sales and EPS guidance despite F1Q sales upside and $400mm of incremental commodity and freight costs ($2.3bn total headwind) relative to late July expectations.

The analyst stated "We continue to anticipate accelerating sales and EPS through F2022 as comparisons become more favorable in F2H22 and pricing offsets inflation. P&G continues to gain global market share, up 50bps y/y in F1Q22, driven in part by innovation, execution, and sustained heightened marketing investment."

For an analyst ratings summary and ratings history on Procter & Gamble click here. For more ratings news on Procter & Gamble click here.

Shares of Procter & Gamble closed at $140.66 yesterday.

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