On Friday, Wells Fargo adjusted its price target for Procter & Gamble to $165 from the previous $158, maintaining an Overweight rating on the household products leader. This revision came on the heels of P&G's fiscal second-quarter earnings which the analyst described as meeting what they referred to as a "low bar," yet leaving room for a potentially better performance in the latter half of the fiscal year.
The brokerage firm noted that P&G's international segment demonstrated strength, describing it as "looked solid". Furthermore, the analyst indicated the stock's future trajectory could be positively influenced should U.S. economic data improve, though this remains uncertain as ongoing debate surrounds the pace and extent of such improvements.
Wells Fargo also emphasized that valuation multiples for consumer staples stocks are near historical lows. As a result, even a performance that simply aligns with expectations but shows positive momentum could provide significant benefits to the sector, potentially acting as "a powerful force" in driving valuations.
Looking further ahead, the firm referenced its outlook for 2026, suggesting that some of the recent difficulties affecting consumer staples companies—including normalization in fundamentals through 2023 and 2024 and shocks related to population trends and inflation in 2025—may see improvement moving toward 2026.
Additional insights come from recent quarterly results where Procter & Gamble posted fiscal second-quarter earnings for 2026. The company slightly exceeded earnings per share expectations by reporting an EPS of $1.88 against the consensus estimate of $1.86. However, revenue was slightly below projections, totaling $22.2 billion compared with the forecasted $22.34 billion.
In response to these results, BofA Securities increased its price target on P&G to $171 from $170, upholding a Buy rating. The firm pointed to P&G's reaffirmation of its full-year guidance as a positive indicator. Similarly, JPMorgan moved the stock from Neutral to Overweight and raised its price target to $165 from $157, citing the company's potential for improvement in organic sales growth and margins.
These recent analyst reactions point toward a cautiously positive outlook for Procter & Gamble despite mixed earnings results, with a focus on future growth possibilities and valuation opportunities within the consumer staples sector.