CFRA, an independent research provider, has provided MT Newswires with the following research alert. Analysts at CFRA have summarized their opinion as follows:
Our unchanged 12-month target of $175 is 25.5x our FY 25 (Jun.) EPS view of $6.87 (down $0.16; FY 24 EPS up $0.07 to $6.55), a premium to the five-year forward P/E average of 24x. FQ3 EPS of $1.52 (+10.6% Y/Y) beat by $0.11 on revenue of $20.2B (+1% Y/Y), $240M below consensus. Organic growth of 3% decelerated from FQ2’s 4% and is attributable to pricing initiatives. Volumes were flat and improved from FQ2’s -1%. Fabric & Home Care and Baby, Feminine, & Family care organic growth decelerated from FQ2 levels. A 300-bp gross margin advance to 51.2% was offset by a 210-bp SG&A advance, yielding a 90-bp EBIT margin advance to 22.1%. Reflecting performance, PG guides to EPS growth of 1%-2%, attributable to lower FX headwinds and YTD commodity costs. We view performance, despite the revenue miss, as reflective of PG’s ability to deliver on productivity initiatives necessary for reinvestment into the business. We are further assured by PG’s view of stable private label and promotional activity amid stretched budgets.