CFRA, an independent research provider, has provided MT Newswires with the following research alert. Analysts at CFRA have summarized their opinion as follows:
We cut our 12-month target by $10 to $157, 24x our FY24 (Jun.) EPS view of $6.55 (up $0.15; FY25 EPS down $0.36 to $6.86), in line with the one-year forward P/E average. F1Q EPS of $1.83 beat by $0.11 on revenue of $21.9B, in line with consensus. Pricing (+7.0%) and volume (-1.0%) were in line with F4Q, though mix came in lower by 100 bps, while tapering FX headwinds of 1% vs. 3% in F4Q offered some relief. Operating margin (+240 bps Y/Y) benefited from pricing, lower input costs, and productivity savings, partially offset by higher marketing costs and wage inflation. PG remains bullish on China, citing projected middle-income consumer growth. Near-term, we view PG as minimally exposed to private label vs. peers, as its portfolio offers superior quality. Despite the strong quarter, we’re wary of the rising U.S. dollar, pricing-related demand destruction headwinds, and margin pressure from tapering commodity tailwinds. We expect F2Q will reflect a more accurate picture of new pressures facing the consumer.