Pershing Square's Ackman: Intrinsic value of P&G stock could hit $125 in two years

William Ackman, CEO of Pershing Square Capital Management, said on Wednesday that the intrinsic value of consumer goods company Procter & Gamble's stock could reach $125 within two years.

Ackman, whose $12 billion hedge fund has taken a roughly $2 billion stake in the firm, extolled Procter & Gamble's strong emerging market presence, which accounts for 40 percent of its sales. He also said it should be able to grow at 5 percent a year, calling it one of the "great businesses of the world."

Ackman, known for his bets against bond insurer MBIA and, most recently, nutritional products company Herbalife, said the P&G stock price could be trading at 20 times estimated earnings

http://www.reuters.com/article/2013/05/08/us-funds-irasohn-ackman-idUSBRE9470YE20130508