Research from Water Tower Research, Water Tower Research

Water Tower Research

Water Tower Research is a leading equity research firm that provides research on micro, small and mid cap companies.

Water Tower Research was founded by Wall Street veterans after witnessing a fundamental shift in the investment research industry with the result being a declining knowledge base among investors, a lack of awareness and a shrinking pool of fundamental research being conducted on companies across the small-cap and micro-cap spectrum. The same issues are now increasingly occurring in the mid-cap space. This sea change within the investment community is impacting not only the companies themselves but also current shareholders and potential investors. With significantly less active sell-side sponsorship by Wall Street, a substantial information gap has developed between companies and various constituents in the financial community. The net result is fewer channels for insight and information to flow between companies and investors.

Research from Water Tower Research

Equity Research Firm

Equity Bottom-Up

<div><ul><li>We are initiating coverage of The Procter &amp; Gamble Company (NYSE: PG), a best-in-class, global Household &amp; Personal Care (HPC) company that aims to grow categories and delight consumers with “irresistible superiority” in product performance, packaging, brand communication, retail execution, and value.</li><li>Our FY26E EPS is $6.85, essentially unchanged from FY25 despite 4% sales growth due to 100 bps of operating margin compression driven by an unfavorable mix, tariff costs, heavy reinvestment, and higher oil-related costs hitting F4Q.</li><li>This is within company guidance of $6.83-7.09 and below FactSet consensus of $6.89. Our FY27E EPS is +2% to $6.99 and our FY28E EPS is +7% to $7.49.</li></ul></div>

We are initiating coverage of The Procter &amp; Gamble Company (NYSE: PG), a best-in-class, global Household &amp; Personal Care (HPC) company that aims to grow categories and delight consumers with “irresistible superiority” in product performance, packaging, brand communication, retail execution, and value.Our FY26E EPS is $6.85, essentially unchanged from FY25 despite 4% sales growth due to 100 bps of operating margin compression driven by an unfavorable mix, tariff costs, heavy reinvestment, and higher oil-related costs hitting F4Q.This is within company guidance of $6.83-7.09 and below FactSet consensus of $6.89. Our FY27E EPS is +2% to $6.99 and our FY28E EPS is +7% to $7.49.

PG: Initiating Coverage; Strategic Interventions Ramping Up - 1 June 2026