Banc of America upgraded Procter & Gamble (PG) to buy from market perform.
Analyst William Steele says the upgrade is based on solid improvement in P&G's cash flow and market share metrics. He says given the tangible evidence of a turnaround, he believes shares are attractively valued. Steele notes shares are selling at 21.5 times his $3.23 calendar 2001 EPS estimate, very close to the S&P multiple of 21.6 times. He believes that as P&G's turnaround becomes more evident to investors and as volumes improve, then projects shares could ultimately trade at a 20% premium to the S&P 500. Thus, Steele set an $85 target