TD Cowen Sees a Slower Recovery Path Taking Shape at Procter & Gamble (PG)

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

On January 27, TD Cowen downgraded The Procter & Gamble Company (NYSE:PG) to Hold from Buy while raising its price target to $156 from $150. The firm cautioned that the company’s turnaround is “likely to drag.” According to the analyst, bullish investors have been holding the stock on the belief that Procter’s organic sales growth hit a low point in Q2 2025 at 0% and would pick up as comparisons ease and market share begins to recover. TD Cowen, however, expects growth to “remain subdued” at around 2% over the next two years, citing limited pricing power and continued pressure on the Hispanic consumer.

That cautious view follows a mixed second quarter. Revenue came in slightly below Wall Street expectations, as softer spending by US consumers and the impact of a government shutdown offset stronger growth in international markets. On the earnings side, adjusted profit exceeded forecasts, helped by solid demand for P&G’s higher-end haircare and beauty products. As a bellwether for the consumer goods industry, the company’s uneven results are closely watched as a signal of broader sector health.

The US government shutdown weighed heavily on P&G’s largest market. Delayed food assistance payments in October and November squeezed lower-income households already dealing with elevated prices and a sluggish job market. Finance chief Andre Schulten said in early December that sales declined across categories in the US due to the shutdown.

Sales volumes fell in three of P&G’s five reported categories and increased only in beauty, which has stood out over the past year as consumers continue to spend on self-care. Overall volumes ran well below the typical U.S. growth range of about 3% to 4% across categories, Schulten noted.

For the three months ended December 31, P&G reported net sales of about $22.21 billion, up roughly 1% year over year but slightly below the $22.28 billion analysts had expected, according to LSEG data. Core gross margin declined for a fifth consecutive quarter, pressured in part by tariffs and by investments in offering a wider range of pack sizes aimed at cost-conscious consumers.

The Procter & Gamble Company (NYSE:PG) is a global consumer staples company focused on selling branded packaged goods to consumers around the world.

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