Consumption Growth Uncertainty Shapes BofA’s Updated View on P&G

Core Insights - The Procter & Gamble Company (NYSE:PG) is recognized as one of the 12 Best Income Stocks to Buy Now [1] - Bank of America (BofA) has lowered its price target for P&G from $175 to $170 while maintaining a Buy rating, citing uncertainty in consumption growth as a significant concern for consumer staples [2] - P&G's stock has decreased nearly 13% since the beginning of 2025, facing increasing competitive pressure from private-label products as consumers become more price-sensitive [3] Consumption Growth and Market Dynamics - The primary concern for consumer staples, including P&G, is the uncertainty surrounding consumption growth, with analysts suggesting that valuations remain uneven and may not improve until fundamental changes occur [2] - If disposable income continues to be under pressure in 2026, consumers may increasingly favor discount and store brands, which could negatively impact P&G's growth outlook, pricing power, and profit margins [3] International Growth Opportunities - P&G's expansion in emerging markets, particularly in Asia and Latin America, is viewed as a crucial strategy for balancing growth, especially as the company approaches saturation in the US and Europe [4] - Continued investment in markets outside of its core regions is becoming increasingly important amid uncertain economic conditions [4] Company Overview - The Procter & Gamble Company is a global consumer goods firm based in Cincinnati, Ohio, with a diverse portfolio that includes household, personal care, and packaged goods categories [5]