Research Alert: CFRA Maintains Sell Opinion On Shares Of P&g
CFRA, an independent research provider, has providedwith the following research alert. Analysts at CFRA have summarized their opinion as follows:We lower our 12-month price target by $7 to $136, based on 19.5x our FY 26 EPS estimate and below the company's five-year average forward P/E multiple of 23.6x, reflecting our view of increased competition, higher commodity prices, and ambitious growth targets. We maintain our FY 26 and FY 27 EPS estimates of $6.96 and $7.27, respectively. P&G posted normalized FQ3 EPS of $1.59 vs. $1.54 in the year prior and $0.03 above consensus estimates. Net sales rose to $21.2B, representing a 7% increase that included a 4%-pt tailwind from FX. Organic sales advanced 3%, driven equally by a 2% increase in volume and 1% improvement in pricing, while mix remained neutral. Profitability metrics came under pressure during the quarter as gross margin contracted by 150 bps to 49.5%. On a core basis, gross margin declined 100 bps to 50.0%, impacted by 180 bps of unfavorable mix, 100 bps of reinvestments, 50 bps of higher tariff costs, and 10 bps of unfavorable commodity costs. We remain at Sell on shares.