Procter & Gamble Catches Tepid Commentary from Two Analysts (PG)

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Consumer products maker The Procter & Gamble Company ( PG ) on Wednesday caught some cautious commentary from analysts at two major Wall Street firms.

Deutsche Bank Lowers Target, Estimates
Analysts at Deutsche Bank maintained their "Buy" rating on PG but cut their price target from $70 to $67. That new target suggests a 13% upside to the stock's Tuesday closing price of $59.27.

A Deutsche Bank analyst commented, "Following management's presentation at our Global Consumer Conference in Paris last week, we are lowering FY 2012 core EPS estimate by about $0.04 to $3.80…We also lowered our 4Q organic growth estimate to 2.4% (from 4%) noting management guided to 2-3%…For fiscal 2013, we have lowered our core EPS estimate to $3.91 (from $4.10) implying a 3% YoY growth in line with midpoint of management guidance of flat to up mid single digits."


Hilliard Lyons Downgrades P&G to Neutral
Meanwhile, analysts at Hilliard Lyons cut their rating on PG from "Long-term Buy" to "Neutral," citing a lack of catalysts moving forward.

A Hilliard Lyons analyst commented, "Our downgrade is based on past, current, and projected sluggishness with PG's business. Macro and company specific factors have represented tough challenges for the company. Management lowered financial guidance at a recent investor presentation, leading us to reduce our earnings estimates yet again. While we consider PG to have an attractive dividend profile, we believe near-term capital appreciation potential is limited. We prefer to wait for better business conditions and a more favorable earnings outlook for purchase of PG shares."

Procter & Gamble shares posted small losses in premarket trading Wednesday.

The Bottom Line
Shares of Procter & Gamble ( PG ) have a 3.80% dividend yield, based on last night's closing stock price of $59.27. The stock has technical support in the $55-$56 price area. The shares have overhead resistance around the $63-$65 price levels.

The Procter & Gamble Company ( PG ) 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 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 The NASDAQ OMX Group, Inc.

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