Goldman Sachs Downgrades Procter & Gamble (PG) to Sell

January 9, 2017 6:17 AM EST
Get Alerts PG Hot Sheet
Price: $136.32 -1.02%

Rating Summary:
    13 Buy, 18 Hold, 2 Sell

Rating Trend: Down Down

Today's Overall Ratings:
    Up: 14 | Down: 5 | New: 58
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Goldman Sachs downgraded Procter & Gamble (NYSE: PG) from Neutral to Sell with a price target of $77.00 (from $86.00).

Analyst Jason English comments "While prospective tax policy changes remain uncertain, our previously published scenario analysis (Corporate tax policy implications for Consumer Staples, on December 19) suggest PG may prove a relative laggard given its already low tax rate and relatively small international cash balance. And given PG’s size, we view needle-moving M&A as unlikely."

Eglish calls PG valuation "rich" saying: "In a still relatively rich sector, PG stands out with its absolute P/E still near a decade high of 21.6x, its P/E relative to HPC peers at a 6-yr peak at roughly a 10% premium, and the richest EV/EBITDA multiple in the group at 15.4x (vs. the 13.3x peer average)."

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 $85.03 Friday.

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