On Friday, Goldman Sachs (NYSE:GS) resumed coverage on Procter & Gamble (NYSE:PG) shares, issuing a Neutral rating with a $168 price target. The firm highlighted the company's sustained organic growth momentum, which is expected to exceed 3%, and a favorable cost environment that is anticipated to support a 7% earnings per share compound annual growth rate from fiscal year 2023 to 2026.
Procter & Gamble's commitment to maintaining product superiority has been instrumental in navigating the share gains that occurred during the Covid pandemic. Goldman Sachs pointed out that this focus is crucial as the unwinding of these gains continues, noting that it remains a risk factor to monitor.
Despite recognizing the company's solid growth prospects, Goldman Sachs believes that the current valuation of Procter & Gamble's shares is fair and thus does not provide a compelling reason to adopt a more positive stance. This assessment has led to the decision to maintain a Neutral position on the stock.
The price target set by Goldman Sachs suggests a view on the future financial performance of Procter & Gamble, taking into account the company's earnings potential and market conditions. The target is based on the firm's analysis of the company's prospects and challenges ahead.
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