Avon Products (NYSE: AVP) was downgraded by Zacks from a “neutral” rating to an “underperform” rating in a note issued to investors on Wednesday. They currently have a $14.00 target price on the stock.
Zacks’ analyst wrote, “Avon’s first-quarter 2012 earnings of $0.10 per share missed the Zacks Consensus Estimate of $0.28 and dipped nearly 73% from the prior-year quarter. Moreover, the company’s net sales inched down 2% reflecting a fall of 1% in total units, partially offset by benefit from favorable price mix. The disappointing result was primarily due to sluggish performance delivered by the company’s each and every category coupled with increased input costs and operating expenses. The North American market continues to remain sluggish with sales falling 4% in the quarter. Moreover, the company’s initiatives to change the product mix and reposition the business in the U.S. market will require significant advertising and promotional expenditures, which may dent its margins. Further, we believe Avon has missed the opportunity of reviving itself citing Coty’s withdrawal of takeover bid. Currently, we are maintaining a long-term Underperform recommendation on the stock.”
Avon Products traded up 1.54% on Wednesday, hitting $16.115. Avon Products has a 52-week low of $15.60 and a 52-week high of $28.96. The company has a market cap of $6.958 billion and a price-to-earnings ratio of 17.46.
Avon Products last released its earnings data on Tuesday, May 1st. The company reported $0.10 earnings per share (EPS) for the quarter, missing the consensus estimate of $0.28 by $0.18. The company’s revenue for the quarter was down 2.0% on a year-over-year basis. Analysts expect that Avon Products will post $0.27 EPS next quarter.
AVP has been the subject of a number of other recent research reports. Analysts at UBS AG (NYSE: UBS) downgraded shares of Avon Products from a “neutral” rating to a “sell” rating in a research note to investors on Monday, May 21st. They now have a $13.00 price target on the stock, down previously from $23.00. Separately, analysts at Wedbush reiterated a “neutral” rating on shares of Avon Products in a research note to investors on Tuesday, May 15th. They now have a $16.00 price target on the stock. Finally, analysts at Deutsche Bank (NYSE: DB) cut their price target on shares of Avon Products from $26.00 to $23.00 in a research note to investors on Wednesday, May 2nd. They now have a “hold” rating on the stock.
Avon Products, Inc. (Avon) is a manufacturer and marketer of beauty and related products. The Company’s product categories are Beauty, Fashion and Home.