01:21 PM EST, 01/17/2025 (MT Newswires) -- Procter & Gamble's ( PG ) organic sales growth trends are expected to be driven primarily by the US, although growth in this market is slowing, RBC Capital Markets said in an earnings preview Friday.

RBC forecasts the company's organic sales to grow 2% to 3% in fiscal Q2, noting that this figure may reflect some conservatism due to cost impacts associated with a cyberattack on a global transportation management provider utilized by the company.

The brokerage highlighted that foreign exchange headwinds and international macroeconomic pressures, including sluggish performance in China and the Middle East markets that collectively make up about 15% of Procter & Gamble's ( PG ) business-are likely to weigh on the company's results for the rest of the year.

These factors could push performance toward the lower end of the company's guidance ranges, according to the note.

RBC believes the company is well-positioned to navigate supply chain disruptions due to its scale and operational flexibility. However, it emphasized that maintaining strong performance in the remaining part of the business, which is performing well, will be critical to offsetting the ongoing headwinds.

RBC has a sector perform rating on the company's stock with a $164 price target.

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