Citi On Procter & Gamble: 'Our Hope Springs Eternal'

In a report published Wednesday, Citi analysts maintained a Buy rating

, with a price target of $100, after spending a day with Chairman and CEO A.G. Lafley. In the report, Drexel Hamilton noted, "…we felt that Lafley sounded strong today—with a clear vision of where he sees PG headed, and a sense of conviction about the actions that the company needs to take to deliver stronger and more sustainable Operating TSR in the future." "He believes that PG's innovation pipeline is stronger than it's been in years, that market share expansion in some key categories reflects much-improved in-store execution, and perhaps most importantly, that PG has the right leadership team in place," the analysts wrote. "Looking ahead, we are cautiously optimistic that PG's results will improve in fiscal 2016 as pricing takes hold in some markets, as some challenged economies recover, as lower commodity prices start to benefit PG's gross margin, and as the company's aggressive productivity programs generate real savings," the analysts said. The report listed out the key takeaways from the meeting with the CEO. The analysts expect Lafley to retire from the CEO post during this calendar year. The next few months could be "full of news on the divestiture front." Citi expects the market share story to "continue to be a very mixed one." The analysts added, "We expect consensus estimates for fiscal 2016 need to come down – even before the impact of any more brand exits or further f/x headwinds."