P&G
UBS Reaffirms ‘Buy’ Recommendation on Procter & Gamble (PG)
UBS Reiterates Buy Rating on Procter & Gamble (PG)
UBS analyst Johannes Wohlers has recently reiterates a buy rating on Procter & Gamble (NYSE: PG) citing the company’s robust fundamentals, strong dividend yields, and growth prospects.
PG, often referred to as the “consumer goods giant,” has a vast portfolio of world-renowned brands like Tide, Pampers, Gillette, Oral-B, and many more. The analyst believes that the company’s diverse product offerings and strong brand recognition will continue to drive the company’s growth.
Additionally, Wohlers highlights that PG has been consistently delivering strong cash flows, which allows it to maintain its dividend payouts. The company’s dividend yield is currently at around 2.5%, making it an attractive option for income-focused investors. Furthermore, the analyst expects the company to continue to grow its dividend payout over the next five years, driven by its strong free cash flow generation.
The analyst also highlights that PG has been gradually increasing its online presence, which will help the company to grow its e-commerce business. This, combined with its strong in-store presence, will help the company to adapt to the changing consumer behavior and preferences.
Wohlers has a $120 price target on PG, which is a 5% increase from the current market price, indicating a modest topline growth potential. The analyst believes that the company’s fundamentals, dividend payouts, and growth prospects make it a great value proposition for investors.
In summary, UBS reiterates a buy rating on PG citing its robust fundamentals, strong dividend yield, and growth prospects. The analyst expects the company to continue to deliver strong cash flows, grow its dividend payouts, and adapt to changing consumer behavior through its e-commerce strategy. With a modest topline growth potential, PG appears to be a great value proposition for investors.