Jefferies Cuts Price Target on Procter & Gamble (PG), Margins Should Increase Over the Year

Jefferies is maintaining its Hold rating on shares of Procter & Gamble (NYSE: PG) while lowering its price target from $71 to $69.

The firm is now forecasting 6.4 percent earning and 6.9 percent revenue growth for 2012. It tweaked its EPS and revenue estimates from $4.25 and $86.356 billion to $4.20 and $88.291 billion. Both estimates are inline with the company's guidance and the firm notes that its sales estimate is slightly higher than the consensus as they now forecast a 2 percent increase in FX.

In 2012 the company will be experiencing multiple increases across its raw material costs. Jefferies believes that the first quarter will experience a majority of the increase. Gross margins should rise over the year, although the firm notes that there is uncertainty when looking all the way to the second half.

For more ratings news on Procter & Gamble click here and for the rating history of Procter & Gamble click here.

Shares of Procter & Gamble closed at $61.67 yesterday.

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