JPMorgan Downgrades Procter & Gamble (PG) to Neutral

JPMorgan analyst Anrea Teixeira downgraded Procter & Gamble (NYSE: PG) from Overweight to Neutral with a price target of $170.00 (from $178.00).

The analyst comments: "We are downgrading PG to Neutral from Overweight. We are taking a pause because we think PG organic sales growth will remain soft for the next few quarters as the categories have decelerated. On the positive side, we trust management’s ability to continue to grow ahead of the categories and also on the recently announced efficiency program (link to our note - more below). We think the bull and bear case for PG is balanced at this point. On the bear side: i- PG has been vocal regarding weak underlying consumption in the U.S. and Europe, on top of the well-communicated challenges in China and other regions due to the Middle East conflict, with no visibility on the timeline of recovery in the interim; and ii- although we think management took the right decision with its recently announced two-year Non-Core Restructuring Program, it signals the need for revamping further within the middle of the P&L to achieve better margins and thus earnings in the absence of a catalyst for top line momentum in the near term."

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 $158.81 yesterday.

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