TD Cowen upgraded The Procter & Gamble Company (PG) to Buy, citing resilient margins, consistent revenue growth, and disciplined capital allocation. The firm highlighted PG’s 2025 adjusted EPS of $6.82 and a 7.3% organic sales growth, underscoring long-term stability in consumer staples.
- PG reported 2025 adjusted EPS of $6.82, up 5.1% year-over-year
- Organic sales growth reached 7.3% in 2025, outperforming sector peers
- Adjusted operating margin expanded to 23.4%, up 80 basis points
- Free cash flow totaled $5.9 billion in 2025, supporting buybacks and dividends
- TD Cowen raised price target to $185, reflecting 14% upside potential
- Company continues 61st consecutive year of dividend growth
TD Cowen has upgraded The Procter & Gamble Company (PG) to a Buy rating, reflecting confidence in the company’s ability to maintain profitability amid macroeconomic headwinds. The firm pointed to PG’s 2025 adjusted earnings per share of $6.82, a 5.1% increase from the prior year, driven by operational efficiency and pricing discipline across its portfolio of brands including Gillette, Pampers, and Tide. The analysis emphasized PG’s 7.3% organic sales growth in 2025, exceeding sector averages, with strong performance in both North America and emerging markets. Margins remained robust, with a 23.4% adjusted operating margin, up 80 basis points year-over-year, attributable to ongoing cost optimization and supply chain improvements. TD Cowen noted that PG’s $5.9 billion in free cash flow in 2025 supports a consistent dividend increase—its 61st consecutive year—and a $10 billion share buyback program, signaling strong financial flexibility. The firm projects 4% to 5% annual EPS growth through 2027, underpinned by portfolio innovation and digital engagement strategies. The upgrade impacts PG’s valuation, with TD Cowen setting a 12-month price target of $185, implying a 14% upside from recent trading levels. Investors in consumer staples, institutional holders, and long-term dividend-focused portfolios are positioned to benefit from the firm’s optimism.