Piper Jaffray Cuts Price Target on Avon Products (AVP) Following 3Q
Piper Jaffray reiterated a Neutral rating on Avon Products (NYSE: AVP), and cut the price target to $3.00 (from $5.00), following the company's 3Q earnings report. This quarter was a step in the wrong direction with underlying trends proving difficult to sustain and N. America returning to a loss.
Analyst Stephanie Wissink commented, "Following a disappointing Q3 report, we are lowering our estimates and price target. Lackluster results particularly in North America where active rep counts have trended negative for the last eight consecutive quarters. Investors are clearly losing hope for a turnaround and questions surrounding the longer-term viability of the operating model as it stands remain. At this juncture, we have little confidence in estimates and we are taking a more conservative stance given further signs of deterioration. Our price target moves down from $5 to $3 and is now based on our FY17 EPS vs. our FY16 EPS previously. We are applying a discounted multiple of 5x vs. 5.5x prior given an extended horizon and underlying uncertainty in a turnaround."
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Shares of Avon Products closed at $3.45 yesterday.