Procter & Gamble Company (PG.US) downgraded by JP Morgan on the eve of its financial report release: Weak organic sales growth expected in the coming quarters.

Before the consumer giant Procter & Gamble Company (PG.US) releases its fourth-quarter financial report next week, Morgan Stanley has downgraded its rating from "overweight" to "neutral". Analyst Andrea Teschera stated that Morgan Stanley's decision was made out of caution, as the team believes that organic sales growth for Procter & Gamble Company in the next few quarters will continue to be weak due to slowing growth in its categories. On the positive side, Morgan Stanley acknowledges Procter & Gamble Company's management's ability to maintain leading growth in core categories, and believes that its recently announced efficiency improvement plan could bring upside potential. However, the factors affecting the stock are currently balanced. It is worth noting that Procter & Gamble Company has specifically mentioned the weak consumer base in the US and European markets, in addition to previously disclosed challenges in other regions due to conflicts in the Middle East, with an unclear timeline for recovery in the short term. Morgan Stanley has set a target price of $170 for Procter & Gamble Company by December 2026, based on a comprehensive calculation of a price-to-earnings ratio of 23.6 times and an enterprise value/ earnings before interest, taxes, depreciation, and amortization ratio of 15.6 times, each accounting for 50%. As of the time of writing, Procter & Gamble Company's stock price has fallen by 0.8% in pre-market trading on Friday. The company is scheduled to release its financial report on July 29th, with analysts expecting revenue to reach $20.9 billion and earnings per share to be $1.42. Procter & Gamble Company has exceeded earnings per share expectations in the past nine quarters.