Avon Products (AVP) Upgraded to “Hold” at Zacks Investment Research
Avon Products (NYSE:AVP) was upgraded by Zacks Investment Research from a “sell” rating to a “hold” rating in a report released on Tuesday.
According to Zacks, “Avon outperformed the industry in the past three months driven by continued progress on Transformation Plan, which delivered above its cost-saving plan for 2017. The company realized cost savings of more than $250 million in 2017, beating the targeted $230 million. The company’s better-than-expected fourth-quarter 2017 earnings, after five straight quarters of negative surprise, also aided stock performance. Earnings gained from considerable margin growth owing to lower bad-debt expenses and benefits from cost reduction initiatives, alongside tax gains from the new tax reform. However, sales reverted to negative surprise trend after a beat in the last quarter, driven by declines in both Active and Ending Representatives in most segments. Going forward, Avon expects sales to be pressured due to a tough macro backdrop. Nonetheless, it expects execution of significant operational improvements in 2018, despite continued competitive pressures.”
A number of other equities research analysts have also recently issued reports on AVP. DA Davidson reaffirmed a “buy” rating and issued a $2.00 price objective on shares of Avon Products in a research note on Monday, November 20th. ValuEngine upgraded shares of Avon Products from a “sell” rating to a “hold” rating in a report on Friday, December 1st. Bank of America lowered shares of Avon Products from a “neutral” rating to an “underperform” rating and lowered their price target for the company from $3.00 to $2.50 in a report on Thursday, January 4th. Jefferies Group set a $2.00 price target on shares of Avon Products and gave the company a “sell” rating in a report on Thursday, February 15th. Finally, Royal Bank of Canada reiterated a “sector perform” rating and set a $2.00 price target on shares of Avon Products in a report on Friday, February 16th. Four equities research analysts have rated the stock with a sell rating, four have issued a hold rating and one has given a buy rating to the stock. The company presently has an average rating of “Hold” and an average price target of $2.47.
Avon Products (NYSE:AVP) last announced its quarterly earnings data on Thursday, February 15th. The company reported $0.12 earnings per share (EPS) for the quarter, beating the Zacks’ consensus estimate of $0.07 by $0.05. Avon Products had a net margin of 0.38% and a negative return on equity of 6.19%. The company had revenue of $1.57 billion during the quarter, compared to analysts’ expectations of $1.60 billion. During the same quarter in the prior year, the company earned $0.01 EPS. The firm’s revenue was up .1% on a year-over-year basis. analysts forecast that Avon Products will post 0.18 earnings per share for the current fiscal year.
Large investors have recently bought and sold shares of the stock. Mitsubishi UFJ Kokusai Asset Management Co. Ltd. raised its holdings in Avon Products by 169.0% during the 4th quarter. Mitsubishi UFJ Kokusai Asset Management Co. Ltd. now owns 51,362 shares of the company’s stock valued at $114,000 after buying an additional 32,268 shares during the last quarter. Xact Kapitalforvaltning AB bought a new stake in Avon Products during the 4th quarter valued at $136,000. PEAK6 Investments L.P. bought a new stake in Avon Products during the 3rd quarter valued at $139,000. Schroder Investment Management Group bought a new stake in Avon Products during the 3rd quarter valued at $156,000. Finally, Caption Management LLC bought a new stake in Avon Products during the 4th quarter valued at $161,000. Institutional investors own 83.62% of the company’s stock.
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About Avon Products
Avon Products, Inc is a manufacturer and marketer of beauty and related products. The Company’s segments include Europe, Middle East & Africa; South Latin America; North Latin America, and Asia Pacific. Its product categories are Beauty, and Fashion and Home. Beauty consists of skincare (which includes personal care), fragrance and color (cosmetics).
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