Procter & Gamble (PG) reaffirmed its sales and earnings guidance for its June quarter, but Deutsche was still forced to cut its PG target $2 to $72.
With PG down less than 15% YTD, the stock may not have electrified anyone’s portfolio, but it has outperformed much of the market. However, despite a target that is still well above the current stock price, Deutsche remains neutral:
We were going to update our estimates and price target as part of the typical quarterly preview but recent events led us to publish these now. We are lowering FY09 EPS to $3.86 (from $3.89) due to input cost inflation and category slowdown. We are also lowering our DCF‐derived price target to $72 (from $74) due to lower margin assumptions.
Deutsche maintain HOLD on Procter & Gamble (PG), target cut from $74 to $72.