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Peltz 'Raises the Execution Bar' at P&G, Jefferies Says

Jefferies analysts see Nelson Peltz's proxy fight to win a seat on Procter & Gamble Co's (PG) board as motivation for the company to "raise the execution bar, which is supportive of a higher multiple," analysts wrote in a Monday note.

P&G has lagged peers in the staples group and the S&P 500 for as long as 10 years. The company has lost market share in key categories and will likely fall "modestly short" of returning to market growth rates again in 2017, Jefferies said.

Peltz's "perceived value" as a member of the board "may lead to greater/faster realization of cost-savings and/or raise the execution bar at P&G, all likely to result in a higher multiple," Jefferies wrote.

Peltz has a "long and well respected history" in advocacy at consumer staples companies. He's currently a director at Mondelez (MDLZ) , Sysco (SYY) , The Madison Square Garden Company (MSG) and Wendy's (WEN) , but he's expected to resign from at least one of his current roles if nominated to P&G's board.

Procter & Gamble is rated as a "buy" at Jefferies with a price target of $98. P&G stock traded up at midday.

What's Hot On TheStreet

Amazon wants to upend every business, or so it seems: New day, a new business Amazon (AMZN) wants to dip its toes in. The latest looks to be the meal kit space, TheStreet reports.


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