Procter & Gamble Indicates a Recovery—Is It Time to Begin Compounding?

Written by Emily J. Thompson, Senior Investment Analyst

PG-0.77%

Source: Marketbeat

Updated: 2d ago

0mins

Source: Marketbeat

Stock Performance: Procter & Gamble (P&G) has confirmed a bottom in early 2026, with stock prices expected to advance significantly over the coming years, despite trading at long-term lows and facing a tepid growth scenario.
Dividend Sustainability: The company maintains a healthy financial position, allowing it to sustain above-average dividend yields of approximately 2.9%, which are critical for investors, particularly buy-and-hold compounders.
Q2 Earnings Insights: P&G's Q2 fiscal year 2026 earnings reveal resilient consumer staples performance, with reported revenue growth of 1% and notable growth in beauty and health care segments, although baby and family care segments faced a decline.
Investment Opportunities: Analysts suggest building positions in P&G over time, with a focus on recent price floors and technical indicators, as the company is expected to continue its share buyback activity and maintain a robust balance sheet.

$148.34+Infinity%1D

Analyst Views on PG

Wall Street analysts forecast PG stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for PG is 164.50 USD with a low forecast of 150.00 USD and a high forecast of 180.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.

17 Analyst Rating

10 Buy

7 Hold

0 Sell

Moderate Buy

Current: 149.490

Low

150.00

Averages

164.50

High

180.00

Current: 149.490

Low

150.00

Averages

164.50

High

180.00

TD Cowen

Buy

Hold

downgrade

$150 -> $156

2026-01-27

New

Reason

TD Cowen

Price Target

$150 -> $156

AI Analysis

2026-01-27

New

downgrade

Buy

Hold

Reason

TD Cowen downgraded Procter & Gamble to Hold from Buy with a price target of $156, up from $150. The firm says the pace of the company's recovery is "likely to drag." Bulls owns the shares on the assumption that Procter's organic sales growth bottomed in Q2 of 2025 at 0% and will accelerate on easier compares and a recovery in market share, the analyst tells investors in a research note. However, TD believes Procter's growth will "remain subdued" at 2% over the next two years on a lack of pricing power and pressure on the Hispanic consumer.

UBS

Buy

maintain

$161 -> $170

2026-01-23

New

Reason

UBS

Price Target

$161 -> $170

2026-01-23

New

maintain

Buy

Reason

UBS raised the firm's price target on Procter & Gamble to $170 from $161 and keeps a Buy rating on the shares. Procter & Gamble delivered a Q2 beat with fiscal 2026 guidance unchanged, the analyst tells investors in a research note.

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BofA

Buy

maintain

$170 -> $171

2026-01-23

New

Reason

BofA

Price Target

$170 -> $171

2026-01-23

New

maintain

Buy

Reason

BofA raised the firm's price target on Procter & Gamble to $171 from $170 and keeps a Buy rating on the shares. The firm made slight tweaks to its model following what it calls a "down the fairway" fiscal Q2 and sees the second half as set for improvement.

DBS Bank

Andy Sim

Hold

Buy

upgrade

$167

2026-01-23

New

Reason

DBS Bank

Andy Sim

Price Target

$167

2026-01-23

New

upgrade

Hold

Buy

Reason

DBS Bank analyst Andy Sim upgraded Procter & Gamble to Buy from Hold with a $167 price target.

About PG

The Procter & Gamble Company is focused on providing branded consumer packaged goods to consumers across the world. The Company’s segments include Beauty, Grooming, Health Care, Fabric & Home Care and Baby, Feminine & Family Care. The Company’s products are sold in approximately 180 countries and territories primarily through mass merchandisers, e-commerce, including social commerce channels, grocery stores, membership club stores, drug stores, department stores, distributors, wholesalers, specialty beauty stores, including airport duty-free stores), high-frequency stores, pharmacies, electronics stores and professional channels. It also sells direct to individual consumers. It has operations in approximately 70 countries. It offers products under brands, such as Head & Shoulders, Herbal Essences, Pantene, Rejoice, Olay, Old Spice, Safeguard, Secret, SK-II, Braun, Gillette, Venus, Crest, Oral-B, Ariel, Downy, Gain, Tide, Always, Always Discreet, Tampax, Bounty and others.

About the author

Emily J. Thompson

Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.