Even if they didn't vote to add Trian Management activist investor Nelson Peltz to the company's board, they're in a "win-win" situation, Jefferies analysts led by Kevin Grundy wrote in a note to clients late Wednesday.
"As we have written in the past, we view P&G's strategy to be appropriate and its management team as extremely capable; however, we also believe Mr. Peltz's involvement - while an unwanted distraction from P&G's perspective - sets up a 'win-win' for its shareholders," Jefferies wrote.
Peltz claimed a narrow victory in his bid for a board seat at P&G after months of bitter back and forth. After initial tallies showed Peltz had lost, a review late Wednesday showed he won the seat by 42,780 votes, or a margin of just 0.0016%.
"Either P&G delivers financial results at least in-line with, if not exceeding, Street expectations," analysts noted, "or we see it likely that Mr. Peltz pushes for greater changes at the company (now seemingly with the opportunity to do so from inside P&G's Board room)."
Jefferies said that should P&G shares trade at 20 times their price to earnings ratio, they have the ability to re-rate with historical precedent, reaching a 10% to 15% premium to their industry group.
Analysts rate P&G stock as a "buy," with a $99 price target. That implies an upside of about 12% from P&G's closing price Wednesday. In premarket action Thursday, shares pushed higher 2.11% to $90.09.
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