Avon Products (NYSE:AVP) was upgraded by Zacks Investment Research from a “sell” rating to a “hold” rating in a note issued to investors on Tuesday.
According to Zacks, “Avon outperformed the industry in the past three months driven by continued progress on Transformation Plan, which delivered above its cost-saving plan for 2017. The company realized cost savings of more than $250 million in 2017, beating the targeted $230 million. The company’s better-than-expected fourth-quarter 2017 earnings, after five straight quarters of negative surprise, also aided stock performance. Earnings gained from considerable margin growth owing to lower bad-debt expenses and benefits from cost reduction initiatives, alongside tax gains from the new tax reform. However, sales reverted to negative surprise trend after a beat in the last quarter, driven by declines in both Active and Ending Representatives in most segments. Going forward, Avon expects sales to be pressured due to a tough macro backdrop. Nonetheless, it expects execution of significant operational improvements in 2018, despite continued competitive pressures.”
Several other research firms have also recently weighed in on AVP. Bank of America cut Avon Products from a “neutral” rating to an “underperform” rating and decreased their target price for the stock from $3.00 to $2.50 in a research note on Thursday, January 4th. Royal Bank of Canada restated a “sector perform” rating and set a $2.00 target price on shares of Avon Products in a research note on Friday, February 16th. Deutsche Bank boosted their target price on Avon Products from $2.00 to $3.00 and gave the stock a “hold” rating in a research note on Friday, February 16th. ValuEngine cut Avon Products from a “hold” rating to a “sell” rating in a research note on Wednesday, March 7th. Finally, DA Davidson restated a “buy” rating and set a $2.00 target price on shares of Avon Products in a research note on Monday, November 20th. Four equities research analysts have rated the stock with a sell rating, four have given a hold rating and one has assigned a buy rating to the company’s stock. The company currently has an average rating of “Hold” and a consensus target price of $2.47.
Avon Products (NYSE:AVP) last announced its quarterly earnings data on Thursday, February 15th. The company reported $0.12 EPS for the quarter, topping the Zacks’ consensus estimate of $0.07 by $0.05. The business had revenue of $1.57 billion during the quarter, compared to the consensus estimate of $1.60 billion. Avon Products had a negative return on equity of 6.19% and a net margin of 0.38%. The business’s revenue for the quarter was up .1% on a year-over-year basis. During the same period in the previous year, the company posted $0.01 earnings per share. analysts forecast that Avon Products will post 0.18 EPS for the current year.
A number of hedge funds have recently bought and sold shares of the stock. Mitsubishi UFJ Kokusai Asset Management Co. Ltd. lifted its stake in Avon Products by 169.0% in the fourth quarter. Mitsubishi UFJ Kokusai Asset Management Co. Ltd. now owns 51,362 shares of the company’s stock valued at $114,000 after buying an additional 32,268 shares during the last quarter. Xact Kapitalforvaltning AB purchased a new stake in Avon Products in the fourth quarter valued at approximately $136,000. PEAK6 Investments L.P. purchased a new stake in Avon Products in the third quarter valued at approximately $139,000. Schroder Investment Management Group purchased a new stake in Avon Products in the third quarter valued at approximately $156,000. Finally, Caption Management LLC purchased a new stake in Avon Products in the fourth quarter valued at approximately $161,000. Hedge funds and other institutional investors own 83.62% of the company’s stock.
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About Avon Products
Avon Products, Inc is a manufacturer and marketer of beauty and related products. The Company’s segments include Europe, Middle East & Africa; South Latin America; North Latin America, and Asia Pacific. Its product categories are Beauty, and Fashion and Home. Beauty consists of skincare (which includes personal care), fragrance and color (cosmetics).
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