Procter & Gamble upgraded to Buy from Neutral at UBS

UBS analyst Peter Grom upgraded Procter & Gamble to Buy from Neutral with a price target of $163, up from $157. Procter has been the worst performing personal care stock year-to-date, which is partially due to the unwind in the group but also concerns around the ability for the company to deliver outsized earnings growth going forward, the analyst tells investors in a research note. The firm views concerns earnings growth concerns as misplaced and believes an earnings inflection is on the horizon looking out to fiscal 2024. Its bottom-up analysis points to nearly 5% organic revenue in 2024, predicated on low single digit consumption, a return to share gains, premiumization, and a benefit from China reopening. UBS sees upside to Street estimates looking out to next year, and see a path sustained high single digit earnings growth on a multi-year basis. This makes the stock’s risk/reward attractive, the firm writes.