Oracle Investment Research Downgrades P&G to “Sell” (PG)


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On Friday analysts at Oracle Investment Research downgraded The Procter & Gamble Company ( PG ) 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 ( PG ) 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 ( PG ) is not recommended at this time, holding a 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 our ratings system here .

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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This article appears in: Investing , Stocks

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