PG - Procter & Gamble stock is viewed positively at Morgan Stanley

2023-04-24 06:47:09 ET

Morgan Stanley reiterated a bullish view on Procter & Gamble ( NYSE: PG ) on Monday following the "high quality" Q3 earnings beat last week and with a favorable setup seen for the balance of the year.

Analyst Dara Mohsenian and team think Overweight-rated Procter & Gamble ( PG ) is delivering above consensus and strong underlying organic sales in the near-term. The consumer products giant is seen reinvesting in marketing to drive forward sales and is anticipated to benefit going forward from easing U.S. market share comparisons, a China high-end beauty rebound post COVID, and a HPC industry GM recovery.

In terms of valuation, P&G stock is observed to be trading at an ~10% P/E premium to Colgate-Palmolive ( CL ), Coca-Cola ( KO ), and PepsiCo ( PEP ), but with good visibility and potential above consensus results.

Shares of P&G traded flat during the premarket session at $156.00.

More on Procter & Gamble:

• Read the latest analysis on Procter & Gamble from Seeking Alpha analysts
• View the growth metrics
• See the comparisons to sector peers
• Dig into the Seeking Alpha Quant Rating
• Read the recent earnings call transcript

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