Standpoint Research Upgrades Avon Products (AVP) to Buy; Stepping Back In
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Price: $5.60 --0%
Rating Summary:
3 Buy, 12 Hold, 4 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 5 | Down: 4 | New: 19
Rating Summary:
3 Buy, 12 Hold, 4 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 5 | Down: 4 | New: 19
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Standpoint Research upgraded Avon Products (NYSE: AVP) from Hold to Buy with a price target of $24.00.
Analyst, Ronnie Moas, said, "On April 2 Avon received a takeover offer of $24...Since the rejected bid through the April 30 close, shares slipped 7% off the April 2 intraday high and then slipped another 8% today on weak Q1 earnings/guidance. With AVP shares underperforming the S&P-500 by more than 1500 bps since our April 2 downgrade I once again see an opportunity here with the shares $4 below fair value looking out to 2013-2014."
"I don’t think Coty will come in with a higher bid, but they may. It is less likely that a third player will enter the mix. AVP shares are currently trading 10% above where they were when I made the November recommendation, but I think there is risk in waiting for it to come back down to that $18 level. The Coty bid has in effect raised the floor on AVP to near the current quote. Additionally, there is a new CEO at AVP and I think that will also put a cap on further selling."
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 $21.60 yesterday.
Analyst, Ronnie Moas, said, "On April 2 Avon received a takeover offer of $24...Since the rejected bid through the April 30 close, shares slipped 7% off the April 2 intraday high and then slipped another 8% today on weak Q1 earnings/guidance. With AVP shares underperforming the S&P-500 by more than 1500 bps since our April 2 downgrade I once again see an opportunity here with the shares $4 below fair value looking out to 2013-2014."
"I don’t think Coty will come in with a higher bid, but they may. It is less likely that a third player will enter the mix. AVP shares are currently trading 10% above where they were when I made the November recommendation, but I think there is risk in waiting for it to come back down to that $18 level. The Coty bid has in effect raised the floor on AVP to near the current quote. Additionally, there is a new CEO at AVP and I think that will also put a cap on further selling."
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 $21.60 yesterday.
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