Procter & Gamble Started as an “Outperform” at Wells Fargo (PG)

By
A A A
Share |

Consumer products maker The Procter & Gamble Company ( PG ) 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 of $65.35.

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 $3.98/$4.39."


Procter & Gamble shares were mostly flat in premarket trading Thursday.

The Bottom Line
We have been recommending shares of Procter & Gamble ( PG ) 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 ( 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.

Created by Dividend.com



This article appears in: Investing , Stocks

Referenced Stocks: PG

Dividend.com

Dividend.com

More from Dividend.com:

Related Videos

Freshman Finance 101
Freshman Finance 101                
Spot the Dropout RRC
Spot the Dropout RRC                
Power on/Power Off
Power on/Power Off                  

Stocks

Referenced

87%

Most Active by Volume

63,683,265
  • $16.34 ▼ 0.12%
57,325,180
  • $10.64 ▲ 1.33%
54,257,396
  • $112.76 ▼ 0.47%
40,860,148
  • $5.86 ▲ 1.38%
40,102,780
  • $28.54 ▲ 0.42%
36,273,767
  • $104.31 ▼ 1.24%
36,196,207
  • $13.87 ▲ 0.95%
35,675,931
  • $10.40 ▲ 0.97%
As of 8/31/2015, 04:15 PM

Find a Credit Card

Select a credit card product by:
Select an offer:
Search
Data Provided by BankRate.com