Consumer packaged goods maker The Procter & Gamble Company (
) saw its coverage initiated with a "Buy" rating on Friday by
analysts at Janney Montgomery Scott.
The firm also set a $70 price target on PG stock, which had
closed at $61.61 on Thursday.
Janney analyst commented, "We view P&G's earnings as being
higher quality and faster growing than its peers for a number of
reasons- higher advertising & R&D reinvestment rates,
strong FCF generation, defensible market shares (good/great
geographies, innovation pipeline, low-cost production), and more
beatable expectations than peers. These factors make its modest
premium (15.2x CY11E P/E vs. 13.2x for HPC) mystifying to us. We
believe Procter's far superior basket of risks and attractive
growth opportunities make its risk/reward compelling."
Procter & Gamble shares were mostly flat in premarket
The Bottom Line
We have been recommending shares of PG since Sept.1, when the stock
was trading at $54.11. The company has a 3.13% dividend yield,
based on last night's closing stock price of $61.61.
The Procter & Gamble Company (
) is a "recommended" dividend stock, holding a Dividend.com DARS™
Rating of 3.5 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
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