Consumer products maker The Procter & Gamble Company (
) caught a big downgrade from analysts at Wells Fargo on
The firm said it cut its rating on PG from "Outperform" to
"Market Perform," noting the company lacks near-term catalysts.
Wells Fargo also lowered its price target range from $67-71 to
$64-67. P&G shares closed at $64.28 on Friday.
A Wells Fargo analyst noted he made the move "…after organic
sales and market share lag primary competitors. Material upside
catalysts lacking until the company can demonstrate a sustained
ability to execute operating margin expansion (i.e., at least two
consecutive quarters of operating margin progress), in our view.
While management continues to make needed investments in D&E
markets for the long-term growth of the company, the expected
near-term catalyst for P&G shares from improving operating
margins (driven largely by the company's core business in developed
markets) continues to be elusive."
Accordingly, the firm also cut its earnings estimates for the
company through 2014.
Procter & Gamble shares fell 61 cents, or -1%, in premarket
The Bottom Line
Shares of Procter & Gamble (
) have a 3.50% dividend yield, based on Friday's closing stock
price of $64.28. The stock has technical support in the $62-$64
price area. If the shares can firm up, we see overhead resistance
around the $68-$70 price levels.
The Procter & Gamble Company (
) is not recommended at this time, holding a Dividend.com DARS™
Rating of 3.4 out of 5 stars.
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