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JP Morgan Ups P&G to Buy

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By: TOM BRANNA

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JP Morgan on Wednesday said it raised its rating on consumer products giant Procter & Gamble Co. to “buy” from “long-term buy,” a day after the maker of Tide laundry detergent said earnings would beat estimates.

Analyst Sally Dessloch told Reuters she also raised her price target to $88 from $80, saying the earnings guidance signals “the company is turning the corner.”

“While the company continues to face challenges ahead, we think management has its arms around the issues and is doing the right things to turn the business around,” Ms. Dessloch wrote in a research note. “Relentless focus on cost-cutting via the recent restructuring has yielded better-than expected results, giving P&G enough cushion to support investments to drive future top-line growth.”

P&G shares closed Tuesday at $76.70.

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