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Price Target of $66 Per Share
Citigroup upgraded Procter & Gamble stock from a hold to a buy on Friday, September 19, 2009. They attached a price target of $66 per share on the basis they expect the company to beat its conservative earnings expectations.
P & G Ready to Get Aggressive
Citigroup Analyst Wendy Nicholson noted that PG is getting ready to become more aggressive to win back market share as raising prices was not effective against competitors.
Conservative Earnings Estimates for 2010
Wendy added that full year 2010 earnings expectations were set conservatively, and the risk of missing the $66 price target is low. On Citi's upgrade, PG moved up over 3% as it has been underperforming the market lately.
Is Citi's upgrade In Line With Technical Analysis?
Using technical analysis, and looking at a 1 year weekly chart of PG, it looks very bullish with room to move higher. PG broke out of an ascending triangle last week and looks poised to move higher to its target price of $64. That represents a 10% gain over today's price, and it will probably over extend to reach the $66 target price that Citi is suggesting. Not every upgrade can be matched with technical analysis, so it is good to see that Citigroup is making a solid recommendation and not trying to lure in investors near the top of a rally.
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