- Stifel lowers Procter & Gamble (NYSE:PG) from a Buy rating to Hold on a less constructive view of the household and personal products sector.
- Analyst Mark Astrachan: "We anticipate share gains continuing, though also think relative outperformance is likely to narrow as comparisons become increasingly difficult. Additional headwinds include higher commodity and freight costs, and an anticipated increase in promotional activity. Nearer term, on its recent F2Q21 earnings call, management said it saw U.S. sales (U.S. is ~44% of total sales) sequentially decelerate in December/January relative to prior months, which we estimate implies low single-digit sales growth compared to low double-digit growth prior, and partly reflective of normalizing retailer inventory levels. We view results from P&G in recent years as nothing short of phenomenal and indicative that management’s strategy to better execute in fewer categories is driving sustainable share gains."
- Shares of P&G are flat in premarket action. Procter & Gamble gained last week after its organic sales beat.