Procter & Gamble: Jefferies still a buyer, raises TP
(CercleFinance.com) - Jefferies reinstates its "buy" recommendation on the Procter & Gamble share, having raised its target price from 140 dollars to 148 dollars, in the wake of 2021-22 EPS estimates raised by approximately 2%-3% for the personal care and household product giant.
Ahead of its fourth quarter results, due out on 30 July, the broker expects organic sales growth of 4%, along with EPS of 1.04 dollar, highlighting strong demand in the US and a recovery in China.
"In addition, we continue to see PG as a beneficiary of COVID-19 mega-trends, such as at-home, on-line and health & hygiene," Jefferies continues, which also points out a P/E of 23.5x, representing a discount of around 10% to its peers.
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