Procter & Gamble: Jefferies downgrades rating

(CercleFinance.com) - Jefferies downgrades its recommendation on Procter & Gamble from 'buy' to 'hold', with a target price lowered by 4% to $175, in a note on the consumer staples group and its peer Colgate-Palmolive - also downgraded to 'hold'.


Personal care and household products (HPC) have outperformed since the start of the year thanks to solid fundamentals, but the broker points out that P&G and Colgate shares are trading at premiums to consumer staples (XLP).

According to Jefferies, the market is paying for better revenue growth and margin expansion, expectations which it sees at risk as consumption slows, demand elasticity weakens and prices fade.


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