Wells Fargo Downgrades Avon Products (AVP) to Market Perform; Takeout of Entire Company Unlikely, Says Analyst

Wells Fargo downgraded Avon Products (NYSE: AVP) from Outperform to Market Perform with a price target of $9-$10 (from $11-$12). Yesterday shares surged on rumors Avon is in talks with private equity firm TPG.

Analyst Chris Ferrara noted Avon sold its Japanese business to TPG in 2010. In his view, yesterdays' rumors are highly speculative, and gains are tied to "low expectations and high short interest." His LBO analysis suggests a takeout of the entire company is unlikely.

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 $8.66 yesterday.

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