RBC Capital Markets Cuts RatingOn Procter & Gamble’s Stock
• RBC Capital Markets downgraded Procter & Gamble Co to “sector perform” from “outperform,” expressing doubts over the management’s ability to execute a recent plan to cut costs and drive growth for its key businesses. The downgrade comes after the world’s largest household products maker lowered its growth forecasts for the second time in two months and unveiled plans to cut costs and focus on its core businesses.
“We no longer have the conviction that PG can pull this off with near flawless execution,” wrote analyst Jason Gere. “It sounds right and we agree with management’s decision to focus on the core but we aren’t certain that we have seen the end of missteps over the next year.”
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