Procter & Gamble Started as a “Buy” at Janney Montgomery Scott (PG)

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Consumer packaged goods maker The Procter & Gamble Company ( PG ) 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 trading Friday.

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 ( PG ) 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 .



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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