Wells Fargo Upgrades Avon Products (AVP) to Outperform

October 7, 2013 5:03 PM EDT Send to a Friend
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Price: $9.57 +1.16%

Rating Summary:
    3 Buy, 15 Hold, 1 Sell

Rating Trend: Up Up

Today's Overall Ratings:
    Up: 14 | Down: 28 | New: 51
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Wells Fargo upgraded Avon Products (NYSE: AVP) from Market perform to Outperform with a price target of $25-$26 (from $21-$23).

Analyst Chris Ferrara said, "AVP is in the early stages of a management turnaround story. We believe AVP's margins and profits are still depressed following years of poor execution and underinvestment by the prior management team. While there is still a long way to go, real progress has been made, and we expect EBIT margin expansion to outpace market expectations (and peers) over the next three years, driving higher-thanexpected earnings results. We think Avon can ultimately outgrow peers based on its market growth advantage (76% of sales in developing markets) and high potential fixed cost leverage, making AVP's 2016 EBIT margin target of 'low double digits' very achievable, in our view."

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 $20.21 yesterday.


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