Procter & Gamble (PG) shares closed higher on Tuesday after a senior Evercore ISI analyst issued a bullish research note in favor of the consumer goods giant. Robert Ottenstein upgraded PG stock to “Outperform” and raised his price objective to $166, indicating potential upside of nearly 13% from current levels.
His bullish stance brings a much-needed reprieve to Procter & Gamble stock, which is currently down about 12% versus its year-to-date (YTD) high.
Why Evercore ISI Upgraded Procter & Gamble Stock
Ottenstein’s upgrade of PG shares hinges primarily on expected top-line strength. In his research note, the analyst raised its Q1 organic sales growth forecast to 3%, decisively above the broader consensus estimate of about 2%.
Despite broader macroeconomic headwinds and shifting consumer sentiment, Procter & Gamble’s strong pricing power and category-leading household brands are helping expand its market share against rivals, Ottenstein told clients.
Meanwhile, higher-margin brands like Pantene, Olay, and Dawn position P&G to protect its margin amid tighter macro environments.
A healthy 2.92% dividend yield makes the company even more attractive as a long-term holding.
P&G Shares Are Attractive Priced in Late 2026
Evercore ISI’s senior analyst also pointed to Procter & Gamble shares’ valuation as a compelling catalyst for long-term investors.
At the time of writing, the giant is trading at a price-to-sales (P/S) multiple of less than 4x, which makes it attractive heading into fiscal Q1 earnings scheduled for Oct. 22.
Consensus is for P&G to record $1.89 in earnings per share (EPS) for its first quarter, representing a decline of about 5.03% on a year-over-year basis.
While the giant faces an estimated $1.4 billion after-tax cost headwind in fiscal 2027, Ottenstein believes its productivity initiatives, efficient distribution model, and accelerating eCommerce sales will buffer margins.
How Wall Street Recommends Playing P&G
Other Wall Street firms seem to agree with Evercore ISI’s bullish stance on Procter & Gamble as well.
According to Barchart, the consensus rating on PG stock sits at “Moderate Buy,” with the mean price target of about $161 indicating potential for a nearly 9% rally through the remainder of 2026.
On the date of publication, Wajeeh Khan did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.