Barclays Maintains an 'Overweight' on Procter & Gamble (PG); Reclassifying Estimates for Pringles

Barclays maintains an 'Overweight' on Procter & Gamble (NYSE: PG) price target of $70.00.

Barclays analyst says, "We are now fully flowing through the moving pieces of the Folgers transaction in our model assuming that the transaction is completed on May 1, 2012. For FY12, we have adjusted our estimates to include: 1) ~$0.01/share dilution from lost EBIT in F4Q12 (i.e., 2/3rd of the quarter will be impacted by Pringles) amplified by negative overhead leverage, 2) ~$0.17/share of one-time restructuring costs, and 3) a $0.60/share extraordinary gain in "other income" in F4Q12. For FY13 we have adjusted our estimates to include: 1) ~$0.06/share dilution from lost EBIT including negative overhead leverage, 2) ~$150 million (~$0.04/share) of restructuring cost savings to offset dilution from Pringles, 3) ~20 million or ~0.7% reduction (~$0.03/share benefit) in shares outstanding from retirement of a portion of the share base as a byproduct of the Pringles split-off."

"On a continuing basis, our Core EPS estimate in FY12 is now $4.20 (P&G's updated Core guidance range is $4.15-4.33), reduced by a penny for the dilution from Pringles. We have modeled for 6% Core EPS growth in FY12 and 10% growth in FY13."

For an analyst ratings summary and ratings history on Procter & Gamble click here. For more ratings news on Procter & Gamble click here.

Shares of Procter & Gamble closed at $63.05 yesterday.

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