Jefferies analysts gave a rousing “buy” recommendation for Procter & Gamble shares.
The analyst firm initiated coverage of the Dow component with a "buy" rating and a price target of $95,
CNBC reported. The stock was at 83.29-0.06 (-0.08%) in early trading.
"We expect P&G's slimmed down portfolio, better focused on geos/categories where it can (and should) win, to drive a return to 3.5% org sales by FY18, in-line with the industry, but ahead of ~2.5-3 percent expectations," they said in a note to clients.
Jefferies also noted Procter's portfolio is now "in a better place."
"P&G has shed 15%/5% of sales/profits, streamlined its portfolio, and continues to rationalize its cost structure," they said.
With the strong dollar hurting sales abroad and rivals chipping away at its market share domestically, P&G has focused on trimming expenses,
Reuters reported.
Chief Executive Officer David Taylor, who took over in November, has called for an additional $10 billion in cost reductions in the next five years, building on his predecessor’s push to slim down the world’s largest consumer-products maker, Reuters reported.
“They’re doing the right things,” said Nik Modi, an analyst at RBC Capital Markets, and there is plenty of room for further cost-cutting. “They’re creating a storehouse of funds so they can reinvest back into the business, so that’s good, but this stuff doesn’t happen overnight.”
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