Deutsche Bank Downgrades Procter & Gamble (PG) to Hold; $74 PT

Deutsche Bank downgrades Procter & Gamble (NYSE: PG) from Buy to Hold and lowers its price target from $76 to $74.

After L'Oreal released its North American numbers yesterday, the firm believes that short-term slowing in the beauty industry will affect Procter & Gamble, possibly squeezing gross margins. Deutsche calls this "more an industry call than a P&G specific one, but as P&G goes, so does the group."

Deutsche believes "there is little room for further multiple expansion" at Procter & Gamble, "and operating EPS estimates are unlikely to be adjusted upwards..." As a result, the firm sees Procter trading in a range until SG&A savings and positives from Folgers restructuring initiatives are realized.

Deutsche's $74 price target on Procter & Gamble represents a potential upside of 6.8% from yesterday's closing price of $69.27.

The Procter & Gamble Company (P&G), together with its subsidiaries, provides branded consumer goods products. [BCS]

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