Citigroup raised its price target for Procter & Gamble Thursday to $66 per share and said the company will likely beat its conservative earnings expectations as it goes on the offensive against competitors.
“PG is readying itself to become more aggressive in order to win back lost market share,” Citigroup Analyst Wendy Nicholson wrote in a research note.
“This is more a call on the stock than on the company … with expectations now having been set pretty conservatively for full-year 2010, we think the risk of a miss to our estimate is low,” she added.
Shares of Procter & Gamble closed at $56.79 Thursday and have been underperforming the wider market of late, according to the Citi note.
Nicholson and the other Citi analysts were impressed by P&G’s acceptance of its own failings, as well as its more dynamic approach to tackling competitors.