Procter & Gamble's price target was cut by TD Cowen from $156 to $142, maintaining a Hold rating. The firm cites oil-related input cost inflation linked to the Iran war as a significant challenge. P&G's shares have seen limited upside, with a 2.07% increase this year after an 11.49% decline last month. The company's premiumization strategy is under pressure as consumers face financial constraints, impacting pricing power and margins. Q2 FY2026 results showed a decline in net sales and operating income, highlighting the challenges ahead.
"TD Cowen reduced estimates across the household and personal care space, arguing that companies will be unable to fully mitigate higher oil-related input costs stemming from the Iran war."
"Even a swift resolution to the conflict won't reverse the damage - price increases will prove sticky due to infrastructure damage."
"P&G's premiumization strategy has been a key margin lever, but if consumers are already stretched, moving them toward higher-priced SKUs becomes structurally harder."
"Core EPS came in at $1.88, beating the consensus estimate of $1.8569, but net sales of $22.21 billion missed the $22.29 billion estimate."
Read at 24/7 Wall St.
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