Valuation Stalls the Bull Case: P&G Cut to Neutral by JPMorgan

The Procter & Gamble Company (NYSE:PG) is one of the best trade-war-resistant stocks to buy now. But not every analyst is ready to double down. On July 25, JPMorgan’s Andrea Teixeira downgraded PG from Overweight to Neutral, cutting the price target from $178 to $170.

The downgrade reflects weak category trends, limited margin upside, and lackluster revenue momentum. Teixeira noted that P&G’s valuation already prices in its long-term strengths, leaving little near-term upside.

This follows the company’s announcement of a major restructuring plan involving the elimination of roughly 7,000 white-collar roles, about 6% of its global workforce, over the next two fiscal years. The move is aimed at flattening management layers, consolidating brand categories, and investing in automation and digital infrastructure.

While the plan is expected to enhance long-term efficiency, analysts don’t expect a near-term earnings boost, and the stock may remain rangebound until the benefits begin to materialize.

Procter & Gamble is a consumer goods giant whose portfolio spans household staples like Tide, Pampers, Gillette, and Oral-B. Its defensive business model and pricing power have historically made it a safe haven during periods of geopolitical and economic instability, including trade wars.

While we acknowledge the potential of PG to grow, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an AI stock that is more promising than PG and that has 100x upside potential, check out our report about this cheapest AI stock.

READ NEXT: 30 Stocks That Should Double in 3 Years and 11 Hidden AI Stocks to Buy Right Now.

Disclosure: None.