Procter & Gamble Investors Appear To Not Care About This Big Downgrade

In a report published Thursday, BMO Capital Markets Connie Maneaty downgraded shares of Procter & Gamble Co (NYSE: PG) to Market Perform from Outperform with a price target lowered to $84 from a previous $100, primarily due to revisions tied to foreign exchange.

According to Maneaty, the company will miss its fiscal 2015 outlook, given the fact that 65 percent of its total sales are international. The analyst noted that the company's international sales are skewed towards markets with the most currency weakness, including the eurozone, Brazil and Russia.

Meneaty said that Procter & Gamble has already stated it has been unable to raise prices in key markets (including Japan and Europe) due to competitive and economic dynamics while its hands are tied in Venezuela (2 percent of total sales) and Argentina (around 1 percent of total sales) due to government-instituted price controls.

Shares traded recently at $82.34, nearly unchanged.