JPMorgan is moving to the sidelines on Procter & Gamble ahead of its fiscal fourth-quarter earnings report next Tuesday. The bank downgraded shares of the consumer goods manufacturer to a neutral rating from overweight, citing expectations of "another lackluster quarter and normalization of category growth." Analyst Andrea Teixeira's price target of $170 per share, down from $178, still implies an upside of 7% from here. Shares of Procter & Gamble have slipped 5% in 2025. PG YTD mountain PG YTD chart Ahead of the company's earnings release, Teixeira lowered her organic sales estimates for its fiscal fourth quarter. "We are taking a pause because we think PG organic sales growth will remain soft for the next few quarters as the categories have decelerated," the analyst wrote. One reason for these softer organic sales could be weaker consumer trends within Procter & Gamble's main markets. "PG has been vocal regarding weak underlying consumption in the U.S. and Europe, on top of the well-communicated challenges in China and other regions due to the Middle East conflict, with no visibility on the timeline of recovery in the interim," the analyst wrote. Teixeira continued: "PG continues to be best in class and its robust and disciplined innovation process is second to none. That said, as lower income consumers in DM are more cautious, and PG is more dependent on DM vs. EM, we believe the lower growth pace will persist in the medium term."
