Procter & Gamble's (PG) expected re-acceleration in topline growth in the second half of fiscal 2026, driven by easier compares and improving North American consumption data, should help close the performance gap with peers and support the shares, BofA Securities said Friday.
The key to this will be better performance in weaker US categories such as baby and family care, continued momentum in personal care and contributions from Latin America and Greater China, the brokerage said.
BofA expects organic sales to improve to the 2% to 3% range in the second half of fiscal 2026. The investment firm said restructuring benefits should allow PG to exit the year with earnings growth at the lower end of its mid-to-high single-digit range. It models 6% earnings per share growth in Q4.
The brokerage is revising fiscal 2026 to fiscal 2028 EPS estimates to $7.00, $7.30 and $7.80, respectively. For fiscal Q3, BofA expects organic sales growth of 2.4% and 1.5% for fiscal 2026.
While the first half of fiscal 2026 was soft, BofA sees improved execution in the second half and believes the setup is increasingly favorable for share outperformance.
BofA reiterated a buy rating and raised its price objective to $171 from $170.
Price: 150.00, Change: +1.13, Percent Change: +0.76
Comments