UPDATE: UBS Downgrades Avon Products (AVP) to Sell; Still Cautious Even After Sell Off
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Price: $5.60 --0%
Rating Summary:
3 Buy, 12 Hold, 4 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 13 | Down: 14 | New: 11
Rating Summary:
3 Buy, 12 Hold, 4 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 13 | Down: 14 | New: 11
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(Updated - May 21, 2012 11:00 AM EDT)
UBS downgraded Avon Products (NYSE: AVP) from Neutral to Sell. PT slashed from $23 to $13.
Analyst, Nik Modi, said, "Since Coty pulled its bid, AVP shares have sold off to pre-Coty bid levels. This has piqued the interest of many investors who are asking if “AVP has bottomed”. As investors start to focus on new management’s plan to turn around the company, we believe it will become obvious that any credible plan to sustainably fix Avon, will require a substantial cut to Avon’s mid-term EPS power. We see 4 major problems at Avon today: 1) uncompetitive rep compensation, 2) inad equate IT systems, 3) cost of business is rising in the emerging markets, and 4) FCPA."
Lowers FY12 EPS estimate from $1.10 to $1.00, FY13 from $1.10 to $0.75 and FY14 to $0.78.
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 $16.95 yesterday.
UBS downgraded Avon Products (NYSE: AVP) from Neutral to Sell. PT slashed from $23 to $13.
Analyst, Nik Modi, said, "Since Coty pulled its bid, AVP shares have sold off to pre-Coty bid levels. This has piqued the interest of many investors who are asking if “AVP has bottomed”. As investors start to focus on new management’s plan to turn around the company, we believe it will become obvious that any credible plan to sustainably fix Avon, will require a substantial cut to Avon’s mid-term EPS power. We see 4 major problems at Avon today: 1) uncompetitive rep compensation, 2) inad equate IT systems, 3) cost of business is rising in the emerging markets, and 4) FCPA."
Lowers FY12 EPS estimate from $1.10 to $1.00, FY13 from $1.10 to $0.75 and FY14 to $0.78.
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 $16.95 yesterday.
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