Morgan Stanley Remains Cautious on Procter & Gamble

In a research report published today by Morgan Stanley, Procter & Gamble's

headwinds will persist with skew to developed markets. Morgan Stanley commented in the report, "Over the last few quarters, we have been worried that PG consensus EPS was much too high and PG guidance was overly aggressive. However, with recent downward revisions, as well as an improving pricing/commodity cost gap benefiting the entire industry, we now believe PG consensus EPS looks more reasonable. A compelling 3.3% dividend yield should also limit stock downside, in our view." Morgan Stanley maintains its Eq ual-weight rating on Procter & Gamble, which is currently trading at $63.99.