Procter & Gamble is a post-pandemic winner: should you buy?

Procter & Gamble Co (NYSE: PG) was a notable beneficiary of the COVID crisis, but the stock looks just as attractive coming out of the pandemic, says Truist Securities’ Bill Chappell.

Chappell sees a 15% upside in P&G stock

On Tuesday, Chappell dubbed P&G a post-pandemic winner as he coupled a “buy” rating on the stock. Explaining why he’s bullish, the Truist analyst said on CNBC’s “The Exchange”:

Every company says they’re coming out of the pandemic stronger, few like Procter & Gamble truly are. They were stronger going into it, they were beating and raising, streamlining their business, and now coming out of it, you can see how they’re separate from other consumer staple stocks.

According to Chappell, P&G is headed for $175 a share that represents a 15% upside from here. In January, the American multinational reported solid results for its fiscal Q2.

Procter & Gamble can withstand inflation

The Truist analyst sees Procter & Gamble as the best positioned to withstand inflation that climbed to a new 40-year high in February, thanks to its focus on product superiority. He noted:

70% plus of P&G products have to be superior than its next competitor. So, ass inflation hits all these companies and they raise prices, consumers won’t be willing to give up on Procter & Gamble’s enhanced products.

Earlier this week, Piper Sandler’s Michael Kantrowitz also said P&G was a great pick citing profitable growth. The stock trades at a PE multiple of 26.84 at present.