Procter & Gamble (PG): Share Losses Will Stabilize Over Time - UBS
- Wall Street surges to new highs; transports set record
- lululemon athletica (LULU) Tops Q3 EPS by 4c; Adj.-Comps Outpaced Views
- Abbott (ABT) Files Complaint to Terminate Alere (ALR) Acquisition
- Costco Wholesale (COST) Tops Q1 EPS by 5c; Comps Up 1%, 2% Ex-Gas
- After-Hours Stock Movers 12/07: (VYGR) (LULU) (HRB( Higher; (OHRP) (VRNT) (CMTL) Lower (more...)
Find out which companies are about to raise their dividend well before the news hits the Street with StreetInsider.com's Dividend Insider Elite. Sign-up for a FREE trial here.
UBS analyst, Stephen Powers, reiteated his Buy rating on shares of Procter & Gamble (NYSE: PG) noting that he does not expect the operating environment to improve near-term since new grooming entrants (Harry's/Dollar Shave Club) are committed to increasing their presence in the category (through new distribution points in the case of Harry's, Unilever-funded investments in the case of DSC), intellectual property disputes are still active, and EPC may accelerate investment in its second year of standalone operation.
However, despite these problems, the analyst believes PG has the ability to stabilize share losses over time with selective reinvestments in value innovations, A&P, price, and emerging channels.
The analyst is modeling accelerated organic growth for Grooming in FY17 and FY18 (ultimately to +3.5% from +1.0% in FY16)—we expect ~+150 bps of this growth to be driven annually by improvements in US grooming specifically.
No change to the price target of $96.
Shares of Procter & Gamble closed at $88.66 yesterday.
Serious News for Serious Traders! Try StreetInsider.com Premium Free!
You May Also Be Interested In
- Pantene and Ronda Rousey Tell the World: Don’t Hate Me Because I’m Strong
- UPDATE: Oppenheimer Upgrades Envision Healthcare (EVHC) to Outperform
- UPDATE: Seaport Global Securities Starts Owens Corning (OC) at Buy
Create E-mail Alert Related CategoriesAnalyst Comments
Sign up for StreetInsider Free!
Receive full access to all new and archived articles, unlimited portfolio tracking, e-mail alerts, custom newswires and RSS feeds - and more!