BMO Capital Markets reaffirmed their outperform rating on shares of Avon Products (NYSE: AVP) in a research note released on Wednesday morning. They currently have a $25.00 price target on the stock, up from their previous price target of $23.00.
“There are positive indications that AVP’s turnaround efforts are starting to have an impact. It reported 4Q adjusted EPS of $0.37 that beat all estimates. The financial cloud is lifting and AVP will redeem the $535 million Private Placement Notes that put it at risk of violating covenants. Though it will repatriate for this redemption if needed, it is also in “advanced” talks to refinance debt of about $905 million that includes near-term maturities and these Notes. After a second major impairment charge, it is looking for strategic alternatives for Silpada. The Venezuela devaluation will have only a minor impact. Working capital at 9.2% of sales is at the lowest level since 4Q08. Sales rose in Latin America and EMEA, markets that account for 75% of sales. Though the US is a strategic priority, it is only 15% of sales and continues to struggle; the fix will take time and investment.,” the firm’s analyst wrote.
A number of other firms have also recently commented on AVP. Analysts at Barclays Capital set a $26.00 price target on shares of Avon Products in a research note to investors on Wednesday. Separately, analysts at B. Riley upgraded shares of Avon Products from a neutral rating to a buy rating in a research note to investors on Wednesday. They now have a $26.00 price target on the stock, up previously from $16.50. Finally, analysts at B. Riley Caris upgraded shares of Avon Products from a neutral rating to a buy rating in a research note to investors on Wednesday. They now have a $26.00 price target on the stock, up previously from $16.50.
Five equities research analysts have rated the stock with a buy rating, and eleven have assigned a hold rating to the company’s stock. The company has a consensus rating of overweight and an average target price of $22.36.
Avon Products traded down 1.37% on Wednesday, hitting $20.81. Avon Products has a 1-year low of $13.70 and a 1-year high of $23.58. The stock’s 50-day moving average is currently $16.56. The company’s market cap is $8.992 billion.
The company also recently declared a quarterly dividend, which is scheduled for Friday, March 1st. Investors of record on Tuesday, February 26th will be given a dividend of $0.06 per share. This represents a $0.24 dividend on an annualized basis and a yield of 1.14%. The ex-dividend date of this dividend is Friday, February 22nd.
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