04.02.15
Volatility, both in markets and in currency, has led BMO Capital Markets to downgrade Procter & Gamble from outperform to perform. In a report published Thursday, BMO's Connie Maneaty downgraded shares of P&G with a price target lowered to $84 from a previous $100, primarily due to revisions tied to foreign exchange.
According to Maneaty, the company will miss its fiscal 2015 outlook, given the fact that 65% of its total sales are international. The analyst noted that the company's international sales are skewed towards markets with the most currency weakness, including the eurozone, Brazil and Russia.
Meneaty said that Procter & Gamble has already stated it has been unable to raise prices in key markets (including Japan and Europe) due to competitive and economic dynamics while its hands are tied in Venezuela (2% of total sales) and Argentina (around 1% of total sales) due to government-instituted price controls.
According to Maneaty, the company will miss its fiscal 2015 outlook, given the fact that 65% of its total sales are international. The analyst noted that the company's international sales are skewed towards markets with the most currency weakness, including the eurozone, Brazil and Russia.
Meneaty said that Procter & Gamble has already stated it has been unable to raise prices in key markets (including Japan and Europe) due to competitive and economic dynamics while its hands are tied in Venezuela (2% of total sales) and Argentina (around 1% of total sales) due to government-instituted price controls.