Shares of Procter & Gamble (PG) - Get Procter & Gamble Company Report  rose nearly 1% to $110.69 in premarket trading Friday after Goldman Sachs upgraded its rating on the household products company to buy from neutral.

Analyst Jason English also increased his price target for the Cincinnati-based company to $125 from $114 a share. English said in a research note that there is room for additional relative outperformance of Procter & Gamble shares even though they've climbed 41% over the past 52 weeks. 

"This past year has marked a turn in PG's market share and organic sales growth," English wrote. "We expect next year to mark a turn in its margin profile and profit growth as relative organic strength sustains."

English added that he believes "there is a role in investors' portfolios for a large liquid global Staples company such as this and note that PG remains the most underweight US listed mega-cap global CPG company among mutual funds."

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"We believe this is poised to change as the company's profit inflects," he wrote. "After conducting a thorough bottom-up analysis, we upgrade PG to Buy from Neutral."

In April, Procter & Gamble posted better-than-expected third-quarter earnings and boosted its full-year sales and cash flow guidance.

The company said said core earnings for the quarter were $1.06 a share, up 6% from the same period last year and 2 cents ahead of the consensus forecast. Sales, the company said, rose 1.22% to $16.5 billion and topped Wall Street forecasts of $16.37 billion. Organic sales rose 5% from last year, the company said, but it also noted that its core operating margin shrank to 19.9%.