Procter & Gamble: Jefferies no longer a buyer
(CercleFinance.com) - Jefferies has downgraded its "buy" rating on the Procter & Gamble stock to "hold" and has cut its corresponding target price from 83 dollars to 79 dollars, in the wake of cutting its 2019-20 EPS estimates by about 6.
5% for the consumer goods giant.
For these two fiscal years, it now expects organic sales growth of less than 2%, while previously it was looking for between 2% and 2.5%, while it now expects the group's operating margin to increase by 20 bp-40 bp, against its previous forecast of a 45 basis point increase each year.
"Slowing market growth, EM volatility, US retail difficulties, the stronger USD & pricing challenges should drive estimates lower again at P&G," the broker warns.
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The information and analyses distributed by Cercle Finance are only intended as decision-making support for investors. Cercle Finance's responsibility may not be entailed, either directly or indirectly following the use of such information and analyses by readers. Any non-professional investor is recommended to consult a professional advisor before making any investment decision. This indicative information in no way constitutes any invitation to sell or buy securities.
5% for the consumer goods giant.
For these two fiscal years, it now expects organic sales growth of less than 2%, while previously it was looking for between 2% and 2.5%, while it now expects the group's operating margin to increase by 20 bp-40 bp, against its previous forecast of a 45 basis point increase each year.
"Slowing market growth, EM volatility, US retail difficulties, the stronger USD & pricing challenges should drive estimates lower again at P&G," the broker warns.
Copyright (c) 2018 CercleFinance.com. All rights reserved.
The information and analyses distributed by Cercle Finance are only intended as decision-making support for investors. Cercle Finance's responsibility may not be entailed, either directly or indirectly following the use of such information and analyses by readers. Any non-professional investor is recommended to consult a professional advisor before making any investment decision. This indicative information in no way constitutes any invitation to sell or buy securities.