Consumption Growth Uncertainty Shapes BofA's Updated View on P&G

The Procter & Gamble Company (NYSE:PG) is included among the 12 Best Income Stocks to Buy Now.

On December 19, BofA lowered its price target on The Procter & Gamble Company (NYSE:PG) to $170 from $175 and kept a Buy rating on the shares. Looking ahead to 2026, the firm said the biggest unanswered question for consumer staples remains consumption growth. Valuations across the group are still uneven, and “there feels little to get them off the sidelines in ’26 until fundamentals signal a greater turning of the tide,” the analyst wrote in a year-ahead note.

The stock has fallen nearly 13% since the start of 2025. While P&G owns a deep and well-known brand portfolio, competitive pressure is building. Private-label products continue to gain share, especially as consumers become more price-conscious. If disposable income remains under pressure in 2026, shoppers may lean further toward discount and store brands. That shift could weigh on P&G’s growth outlook, pricing power, and margins.

International growth offers some balance. Expansion in emerging markets such as Asia and Latin America remains a key lever. The Procter & Gamble Company (NYSE:PG) is already close to saturation in the US and Europe, which limits incremental growth in those regions. Continued investment outside its core markets becomes more important when economic conditions are uncertain.

The Procter & Gamble Company (NYSE:PG) is a global consumer goods company headquartered in Cincinnati, Ohio, with operations spanning a wide range of household, personal care, and packaged goods categories.

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