Procter & Gamble's (PG) mostly upside fiscal 2027 earnings guidance reflects a prudent view of market realities, implying at least modest share growth, RBC Capital Markets said in a Thursday note.

Organic sales are guided to grow 1% to 3%, with the 2% center of the range requiring Procter to grow its share at least modestly, analysts said. The company guided Q1 fiscal 2027 to be down 5% or more, driven by the front-half concentration of cost headwinds, including materials produced when oil was higher than $100 a barrel.

RBC lowered its fiscal 2027 organic sales growth estimate to 2.3% from 2.4% previously and moved its EPS estimate to $6.98 from $6.99 prior, to reflect phasing of cost pressures and below-the-line items, partially offset by productivity, according to the note.

Low-single digit percentage earnings per share growth remains achievable at the midpoint, analysts said, but the H1 cost concentration creates meaningful phasing pressure.

RBC maintained its outperform rating with a $167 price target on the company's stock.

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