July 14 - Procter & Gamble (PG, Financial) shares slid about 2% Monday after Evercore ISI cut its rating to In Line from Outperform, according to a recent note.
Evercore warned that Procter & Gamble's fiscal 2026 organic sales guidance of 1% to 3% growth, which factors in roughly 50 basis points of portfolio attrition, may undershoot the 2.4% consensus forecast.
Analyst Robert Ottenstein said the consumer staple giant faces “transient macro pressures” but noted its expanded mid‑tier “flanker” brands should offer value to cost‑sensitive shoppers. He flagged risks from shifting retail dynamics, particularly as Amazon (AMZN) now drives half of all health and personal care growth.
Ottenstein highlighted a two‑point growth gap emerging between Amazon and core bricks‑and‑mortar partners like Walmart (WMT, Financial) and Costco (COST, Financial), where Procter's scale and product range remain competitive. He also cautioned that accelerated online sales trends in China could delay a rebound.
Investors will look to Procter & Gamble's fourth‑quarter report on July 29 for clarity on its outlook and any adjustments to its sales targets.
