Why BTIG Downgraded Procter & Gamble

April Scee of BTIG downgraded Procter & Gamble Co (NYSE: PG) to Neutral on Tuesday after shares traded above the firm's $92 price target.

According to Scee, shares of Procter & Gamble have outperformed some of its peers throughout 2014. The analyst notes that the company's "Hundred Brand Purge" will create a “leaner, more focused organization” however this does not represent a near-term catalyst for a further re-rating of shares.

Scee believes that it will take at least 12 months for the company to demonstrate a better organic growth flow through, a necessary event required to become more positive on shares.

In addition, the analyst sees “limited” upside to gross margin improvements (30 basis points in fiscal 2015 and 80 basis points in fiscal 2016) while at the same foreign exchange rates remains a “significant headwind.”