On Friday analysts at Oracle Investment Research downgraded The
Procter & Gamble Company (
) as it sees little growth progress for the company.
The analysts dropped P&G from a "Neutral" rating to "Sell"
with a price target of $64. The new target is a 9% downside from
Thursday's closing price of $70.07.
Oracle analyst Laurence Balter comments, "PG reported and we
still don't see progress. In fact, we see the opposite. Sure, gross
margins are a bit better (+30bps), but the share could is up 1.7
million shares from last quarter (shares could should have dropped
by 38 million). Why did they bother to spend $2.5B on a stock
repurchase? Total debt is UP by $2.5B, and pension in underfunded
by $5.5 up another +$1.3B. This continues to look like a slow train
wreck to us, and we hope (and urge) Ackman to raise the temperature
in the board room."
P&G shares were down 37 cents, or -0.53%, in premarket
trading on Friday.
The Bottom Line
Shares of Procter & Gamble (
) have a 3.21% dividend yield, based on last night's closing stock
price of $70.07. The stock has technical support in the $64-$65
price area. The stock is trading near the all-time high range of
$70-$73 a share.
The Procter & Gamble Company (
) is not recommended at this time, holding a Dividend.com DARS™
Rating of 3.4 out of 5 stars.
Be sure to visit our complete recommended list of the
Best Dividend Stocks
, as well as a detailed explanation of
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