TD Cowen Flags Weaker Pricing Power, Trims P&G Target

The Procter & Gamble Company (NYSE:PG) is included among the 14 Cheap DRIP Stocks to Buy Now.

On March 31, TD Cowen lowered its price recommendation on The Procter & Gamble Company (NYSE:PG) to $142 from $156. It reiterated a Hold rating on the shares. The firm also reduced its estimates across the household and personal care space. It said companies are unlikely to fully offset higher oil-related input costs tied to the Iran war. Even if the conflict ends soon, the analyst noted that price increases “will prove sticky due to infrastructure damage.” TD Cowen also pointed to weaker pricing power compared to past periods, along with fewer opportunities to move consumers toward higher-end products. These factors contributed to the lower target.

Analysts at CNBC observed that earlier in March, investors had been rotating into consumer staples at the start of the year, while pulling back from technology stocks and the Magnificent Seven. The shift was noticeable, with investors favoring steady cash flow businesses that offer consistent dividends. That trend began to reverse after the Iran war started. Consumer staples stocks came under pressure as rising fuel costs raised concerns about tighter household budgets and weaker spending on everyday items.

Even so, the defensive nature of the sector remains intact. Companies like Procter & Gamble are still viewed as relatively stable, since demand for basic products such as laundry and personal care items tends to remain steady across economic cycles.

The Procter & Gamble Company (NYSE:PG) focuses on branded consumer packaged goods sold worldwide. It operates through five segments: Beauty, Grooming, Health Care, Fabric & Home Care, and Baby, Feminine & Family Care. Its products are available in around 180 countries and territories.

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