Procter & Gamble (PG) aims to offset the $1 billion to $1.5 billion annual tariff impact through favorable foreign exchange movements, falling commodity costs, and product pricing and innovation strategies, BofA Securities said in a note on Friday.
Despite a drop in share price after fiscal Q3 earnings, the company's core business remains solid as consumer purchasing behavior among the top 80% in the US has not changed significantly, with slight softness in category growth, according to the note.
The firm said that China is showing improvement due to double-digit growth in SK-II, although overall volumes are still negative. In Latin America, pricing gains are expected to support performance despite possible volume softness.
BofA said it reduced EPS estimates for fiscal 2025 and 2026 due to margin pressures from tariffs.
The firm lowered its price objective on Procter & Gamble's stock to $180 from $190 and maintained a buy rating.
Price: 158.67, Change: -0.87, Percent Change: -0.54
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