The company behind Tide and Pampers sells products priced a notch above private label fare, which is why P&G's sales have suffered in recent months. CEO A.G. Lafley, who is stepping down next month, but will remain as chairman, announced in May that revenues would stay relatively flat in 2010, below analysts' projections. But management also stressed that P&G would boost its investment in new products, sticking to the company's proven strategy of growing through innovation.
Lauren Lieberman, a Barclays analyst, rates P&G overweight and has a $60 price target. In a recent note, she argued that the company's underwhelming performance was due to the macroeconomic environment, not its product mix.
--M.K.
