TD Cowen Sees a Slower Recovery Path Taking Shape at Procter & Gamble (PG)

The Procter & Gamble Company (NYSE:PG) is included among the 12 Best Stocks to Buy for the Long Term.

On January 27, TD Cowen downgraded The Procter & Gamble Company (NYSE:PG) to Hold from Buy portion raising its terms people to $156 from $150. The steadfast cautioned that the company’s turnaround is “likely to drag.” According to the analyst, bullish investors person been holding the banal connected the content that Procter’s integrated income maturation deed a debased constituent successful Q2 2025 astatine 0% and would prime up arsenic comparisons easiness and marketplace stock begins to recover. TD Cowen, however, expects maturation to “remain subdued” astatine astir 2% implicit the adjacent 2 years, citing constricted pricing powerfulness and continued unit connected the Hispanic consumer.

That cautious presumption follows a mixed 2nd quarter. Revenue came successful somewhat beneath Wall Street expectations, arsenic softer spending by US consumers and the interaction of a authorities shutdown offset stronger maturation successful planetary markets. On the net side, adjusted nett exceeded forecasts, helped by coagulated request for P&G’s higher-end haircare and quality products. As a bellwether for the user goods industry, the company’s uneven results are intimately watched arsenic a awesome of broader assemblage health.

The US authorities shutdown weighed heavy connected P&G’s largest market. Delayed nutrient assistance payments successful October and November squeezed lower-income households already dealing with elevated prices and a sluggish occupation market. Finance main Andre Schulten said successful aboriginal December that income declined crossed categories successful the US owed to the shutdown.

Sales volumes fell successful 3 of P&G’s 5 reported categories and accrued lone successful beauty, which has stood retired implicit the past twelvemonth arsenic consumers proceed to walk connected self-care. Overall volumes ran good beneath the emblematic U.S. maturation scope of astir 3% to 4% crossed categories, Schulten noted.

For the 3 months ended December 31, P&G reported nett income of astir $22.21 billion, up astir 1% twelvemonth implicit twelvemonth but somewhat beneath the $22.28 cardinal analysts had expected, according to LSEG data. Core gross borderline declined for a 5th consecutive quarter, pressured successful portion by tariffs and by investments successful offering a wider scope of battalion sizes aimed astatine cost-conscious consumers.

The Procter & Gamble Company (NYSE:PG) is simply a planetary user staples institution focused connected selling branded packaged goods to consumers astir the world.

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