Consumer products maker The Procter & Gamble Company (
) on Thursday saw its coverage initiated with an "Outperform"
rating by analysts at Wells Fargo.
The firm also set a $70-73 valuation range on the stock, which
implies a 7% to 12% upside to the stock's Wednesday closing price
A Wells Fargo analyst commented, "Our positive view within our
Market Weight Household and Personal Care sector rating is based on
(1) P&G's industry leading R&D investments, (2) penetration
acceleration in developing and emerging (D&E) markets (i.e.,
more relative runway vs. competitors), and (3) leveraging both
scale and financial strength to grow earnings. Near-term gross
margin should be restrained by rising input costs. Long-term
gross/op margin expansion should be driven by ongoing cost savings
initiatives, improving business/product mix, and leveraging
distribution expansion…Our FY '11/'12 EPS estimates of
Procter & Gamble shares were mostly flat in premarket
The Bottom Line
We have been recommending shares of Procter & Gamble (
) since Sept.1, 2009, when the stock was trading at $54.11. The
company has a 2.95% dividend yield, based on last night's closing
stock price of $65.35.
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