Procter & Gamble initiated with a Buy at TD Cowen

TD Cowen initiated coverage of Procter & Gamble with a Buy rating and $189 price target. The analyst launched coverage on the household and personal care sector with five Buy rated stocks and one Sell. While these stocks already trade at a premium to peers, TD sees continued outperformance in the near-to-medium term due to their “resonant science-led innovation” and the “latent pricing power” they have accumulated from premiumization and pricing lags relative to food and beverages, the analyst tells investors in a research note. The firm believes Procter & Gamble is in the “middle-innings” of an above-peer growth cycle that began after the company’s reorganization in 2018. It sees latent pricing power relative to peers.