Analyst downgrades 6-07-07: PG, IMCL and AV

Posted Jun 7th 2007 11:03AM by Eric Buscemi
Filed under: Analyst Reports, Analyst Upgrades and Downgrades, Procter and Gamble (PG), ImClone Systems (IMCL)

MOST NOTEWORTHY: Procter & Gamble Company (NYSE: PG), ImClone Systems Incorporated (NASDAQ: IMCL) and Avaya Inc (NYSE: AV) were today's noteworthy downgrades:

Procter & Gamble was downgraded to Equal Weight from Overweight at Lehman, as the firm does not expect margin upside or sustained re-acceleration of revenue growth in FY08.
Morgan Stanley downgraded shares of ImClone to Underweight from Equal Weight, as the firm believes growth expectations and valuation are ahead of themselves after "underwhelming" CRYSTAL and second line colon cancer data.
Avaya was downgraded to Hold from Buy at Kaufman Brothers, which views other bidders as "unlikely."

OTHER DOWNGRADES:

Needham downgraded Oplink Communications Inc (NASDAQ: OPLK) to Hold from Buy.
IDT Corporation (NYSE: IDT) was downgraded to Sell from Hold at Stanford to reflect the company's accelerating cash burn, valuation and lack of a turnaround.
JP Morgan downgraded Volvo (NASDAQ: VOLV) to Underweight from Neutral on valuation.
PDL BioPharma Inc (NASDAQ: PDLI) was downgraded to Market Perform from Outperform at Wachovia based on valuation and lack of catalysts.

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Reader Comments (Page 1 of 1)

6-07-2007 @ 1:16PM

Bruce E Warnock said...

PG financial statements are a mess. Looking at their latest 10-Q at the SEC, for their March 31, 2007 balance sheet they have a deficit working capital, 69 B$ in debt and a 24 B$ deficit tangible net worth. The reported net worth of 66 B$ is offset by 90 B$ in goodwill! Any significant impairment in goodwill will result in a reported book value being shown in the red. Most financial analysts deduct goodwill when arriving at "tangible net worth".

It is hard to imagine how S&P and Moody's can give them any rating at all. PG really needs to get its financial house in order. They can do so much better than this. It is a sad commentary that such a great company as PG can let their financial house deteriorate to this extent.

We are retired folks and no longer own any PG shares.