Citi Dilutes Myths Regarding Procter & Gamble's (PG) Emerging Market Opportunity
PG Hot Sheet
Rating Summary:10 Buy, 9 Hold, 0 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 11 | Down: 5 | New: 13
Citi maintains a 'Buy' rating on Procter & Gamble (NYSE: PG) and $69 price target.
Citi analyst is out in defense of the Company, diluting myths regarding PG's emerging market opportunity (or lack of).
Myth: PG is sub-scale in emerging markets — While PG generates only 33% of its sales in emerging markets, this equals a whopping nearly $25 billion in sales.
Myth: PG was late to go global — Maybe PG was late to enter some countries, but PG entered China, Russia and Turkey ahead of Avon (NYSE: AVN) and Colgate (NYSE: CL).
Myth: Shift to modern trade is bad for PG — PG is focused on growing profitably everywhere – both in the traditional trade and in the modern trade.
Myth: Profit margins in emerging market will remain depressed for a long time — Some markets, like India where investment costs remain high, will likely have low EBIT margins for some time, but others like China, are very profitable.
Myth: PG is PG the world over — PG has made tough choices about where to invest and where to play in various emerging markets.
Citi analyst is out in defense of the Company, diluting myths regarding PG's emerging market opportunity (or lack of).
Myth: PG is sub-scale in emerging markets — While PG generates only 33% of its sales in emerging markets, this equals a whopping nearly $25 billion in sales.
Myth: PG was late to go global — Maybe PG was late to enter some countries, but PG entered China, Russia and Turkey ahead of Avon (NYSE: AVN) and Colgate (NYSE: CL).
Myth: Shift to modern trade is bad for PG — PG is focused on growing profitably everywhere – both in the traditional trade and in the modern trade.
Myth: Profit margins in emerging market will remain depressed for a long time — Some markets, like India where investment costs remain high, will likely have low EBIT margins for some time, but others like China, are very profitable.
Myth: PG is PG the world over — PG has made tough choices about where to invest and where to play in various emerging markets.
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