- Bernstein thinks Procter & Gamble (PG +1.2%) would be smarter to break up than continue to sell off its brands in pieces.
- The investment firm bases its view off of analysis on the returns of other spinoffs and companies utilizing divestiture strategies in the consumer sector.
- Bernstein: "We believe this analysis supports our view that a more significant break-up of Procter & Gamble will result in two (or more) entities that can easily overcome the loss of scale “benefits” and be more nimble, more flexible, and less complex than even the soon-to-be slimmed down Procter & Gamble."
- P&G has lagged the S&P 500 over the last year.