- Morgan Stanley is even more constructive on Procter & Gamble (NYSE:PG) after taking in the firm's Q2 earnings report over the weekend.
- Analyst Dara Mohsenian and team believe PG's solid FQ4 organic sales result and FY22 guidance highlight favorable fundamentals for the consumer products giant in relation to peers.
- "Specifically, we believe PG’s market share momentum and successful execution changes from the last few years (which we expect to continue under new CEO Jon Moeller's leadership, replacing outgoing CEO David Taylor) will drive a superior growth outlook vs. HPC peers, despite a very difficult industry commodity/supply chain cost environment (the worst we have seen in our more than two decades of covering the group)."
- MS does not think the upside is properly reflected in PG's valuation marks. vs. peers like CL, CLX and CHD. The firm reiterates an Overweight rating on Procter & Gamble and boosts its FY22-FY23 estimates by ~1.5% to reflect a higher FY21 base and greater conviction in PG's ability to partially offset commodity pressure with strong underlying market share momentum, pricing and productivity.
- The new Morgan Stanley price target on Procter & Gamble is $160.
- Procter & Gamble topped estimates last week on strong demand for healthcare, skincare products.