Valuation Stalls the Bull Case: P&G Cut to Neutral by JPMorgan

The Procter & Gamble Company (NYSE:PG) is one of the best trade-war-resistant stocks to buy now. But not every analyst is ready to double down. On July 25, JPMorgan’s Andrea Teixeira downgraded PG from Overweight to Neutral, cutting the price target from $178 to $170.

The downgrade reflects weak category trends, limited margin upside, and lackluster revenue momentum. Teixeira noted that P&G’s valuation already prices in its long-term strengths, leaving little near-term upside.

This follows the company’s announcement of a major restructuring plan involving the elimination of roughly 7,000 white-collar roles, about 6% of its global workforce, over the next two fiscal years. The move is aimed at flattening management layers, consolidating brand categories, and investing in automation and digital infrastructure.

While the plan is expected to enhance long-term efficiency, analysts don’t expect a near-term earnings boost, and the stock may remain rangebound until the benefits begin to materialize.

Procter & Gamble is a consumer goods giant whose portfolio spans household staples like Tide, Pampers, Gillette, and Oral-B. Its defensive business model and pricing power have historically made it a safe haven during periods of geopolitical and economic instability, including trade wars.

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Disclosure: None.