Goldman Revises Estimates on P&G (PG) But Still Sees Double Digit EPS Growth in 2012
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Price: $142.97 --0%
Rating Summary:
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Today's Overall Ratings:
Up: 8 | Down: 5 | New: 26
Rating Summary:
19 Buy, 23 Hold, 1 Sell
Rating Trend:
Down
Today's Overall Ratings:
Up: 8 | Down: 5 | New: 26
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Goldman Sachs reiterated a Buy rating on shares of Procter & Gamble (NYSE: PG) Thursday as the firm believes the company is still poised to reach its FY11 EPS targets in June and grow earnings at a double-digit pace in 2012. Goldman maintains a $75 price target on P&G shares.
The firm pointed out that there have been some rising costs in commodities and sales distribution due to adverse impacts from the recent issues in the Middle East and Japan. As a result, Goldman raised its 2011 EPS estimate from $3.89 to $3.96 and lowered its 2012 and 2013 estimates from $4.44 and $4.83 to $4.40 and $4.79, respectively.
Goldman believes the Middle East and Japan news is being offset largely due to price increases and favorable foreign exchange movements.
While Goldman lowered near-term forecasts, the firm stated that P&G can still grow sales at a mid-single digit rate with market share gains supported by geographic expansion and new products.
The firm said, "Forex is ahead of budget for FY11 and is a $0.08 tailwind for FY12 EPS. Currency moves and buybacks alone can support MSD EPS growth in FY12, offsetting other pressures."
The firm pointed out that there have been some rising costs in commodities and sales distribution due to adverse impacts from the recent issues in the Middle East and Japan. As a result, Goldman raised its 2011 EPS estimate from $3.89 to $3.96 and lowered its 2012 and 2013 estimates from $4.44 and $4.83 to $4.40 and $4.79, respectively.
Goldman believes the Middle East and Japan news is being offset largely due to price increases and favorable foreign exchange movements.
While Goldman lowered near-term forecasts, the firm stated that P&G can still grow sales at a mid-single digit rate with market share gains supported by geographic expansion and new products.
The firm said, "Forex is ahead of budget for FY11 and is a $0.08 tailwind for FY12 EPS. Currency moves and buybacks alone can support MSD EPS growth in FY12, offsetting other pressures."
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