Wedbush maintains a 'Neutral' on Avon Products (AVP); Coty Gone; Shares Fundamentally Worth $16
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Price: $24.02 +2.52%
Rating Summary:
4 Buy, 12 Hold, 1 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 11 | Down: 35 | New: 23
Rating Summary:
4 Buy, 12 Hold, 1 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 11 | Down: 35 | New: 23
Trade AVP Now!
Wedbush maintains a 'Neutral' on Avon Products (NYSE: AVP) price target of $23.25.
Analyst, Kurt Frederick, said, "Following two months’ of stonewalling from Avon’s board and senior management, Coty sent the company a letter last night stating they are dropping their bid for Avon, which last week had been raised to $24.75 per share from a prior bid of $23.25 a share. Though Coty’s letter stated they plan to “move on to other opportunities”, we do not yet entirely believe we have heard the last of this takeover speculation."
"Avon’s fundamental performance the past several quarters has certainly been disappointing, particularly in Q1, when results fell significantly below expectations, causing sharp reductions in consensus estimates...If AVP were to trade on pure fundamentals, without any takeover premium, we believe the stock could trade at an EV/2012E EBITDA multiple of 8x, in line with the peer group average, implying a $16 level."
For an analyst ratings summary and ratings history on Avon Products click here. For more ratings news on Avon Products click here.
Shares of Avon Products closed at $20.96 yesterday, with a 52 week range of $16.09-$30.63.
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Analyst, Kurt Frederick, said, "Following two months’ of stonewalling from Avon’s board and senior management, Coty sent the company a letter last night stating they are dropping their bid for Avon, which last week had been raised to $24.75 per share from a prior bid of $23.25 a share. Though Coty’s letter stated they plan to “move on to other opportunities”, we do not yet entirely believe we have heard the last of this takeover speculation."
"Avon’s fundamental performance the past several quarters has certainly been disappointing, particularly in Q1, when results fell significantly below expectations, causing sharp reductions in consensus estimates...If AVP were to trade on pure fundamentals, without any takeover premium, we believe the stock could trade at an EV/2012E EBITDA multiple of 8x, in line with the peer group average, implying a $16 level."
For an analyst ratings summary and ratings history on Avon Products click here. For more ratings news on Avon Products click here.
Shares of Avon Products closed at $20.96 yesterday, with a 52 week range of $16.09-$30.63.
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