Goldman Sachs Has $75 Price Target On Procter & Gamble (PG)

Goldman Sachs has a $75 price target and a Buy rating on shares of Procter & Gamble Company PG. In a note sent to clients, Goldman writes, "White space expansion is bigger than we expected. P&G laid out explicit plans to grow its footprint significantly over the next five years across categories (+25%), price tiers (+20%), and channels (+40%). P&G has high probability of success from scale advantages. These efforts support 5.5% sustained sales growth that is 75 bp above consensus. Productivity programs are bigger than expected. The company sees up to 450 bp of margin opportunity over 5 years. PG will reinvest, but this is still well above the 150 bp consensus. We were also encouraged by the greater amount of detail P&G provided around its cost programs. Price realization could be bigger than expected. We see potential for +1-3% price/mix in the Mar/June quarters on less promotional activity." Shares of PG gained 86 cents yesterday to close at $64.50 yesterday.