UPDATE: UBS Initiates Coverage on P&G at Neutral, Sets $81 Price Target

UBS initiated coverage of Procter & Gamble PG with a Neutral rating and $81 price target. Challenges plaguing the company “remain rooted in pre-recession decisions/actions, that have made it more difficult to cope with post-recession realities, said Stephen Powers, analyst at UBS. According to Powers, the main decision posing challenges was “migrating the portfolio toward more discretionary Beauty & Personal Care categories,” which were made under then-CEO AG Lafley. Powers believes that the company's products “remain too highly priced, forcing PG to ‘innovate down,' which constrains margins.” Shares of Procter & Gamble are up 1.4 percent to $78.53 on the session.