“AVP is early in a three-year transformation, but selling [North American business] to Cerberus alleviates cash worries, with remaining int’l business poised for greater growth. Scenario analysis points to favorable risk/reward, with base case suggesting shares could double by end of ’17,” they said in a note to clients.
Jefferies also placed a $7 price target. On Friday, the stock held near $4.20.
“Buying Avon early in its three-year transformation takes a leap of faith, particularly amid an opaque [short-term] financial outlook. Despite this, we like management’s explicit list of priorities for ’16 as it lays a road map to reach its very achievable [long-term] targets,” Jefferies said.
Stock Performance: Click here for a free comprehensive Trend Analysis Report
Avon Products Inc (NYSE:AVP) stock is currently trading 40.76% below its 52-week-high, 90.05% above its 52-week-low. The 1-year stock price history is in the range of $2.21 – $7.09. AVP stock price has outperformed the S&P 500 by 0%. The Cosmetics & Toiletries company is currently valued at $1.83 billion, and its share price closed the last trading session at $4.2. The stock has a 50-day moving average of $4.31 and a 200-day moving average of $3.89.
Avon Products Inc (AVP) current short interest stands at 26.7 million shares. It has decreased by 1% from the same period of last month. Around 25% of the company’s shares, which are float, are short sold. With a 10-days average volume of 3.51 million shares, the number of days required to cover the short positions stand at 7.7 days.
AVP is forecasted to report earnings per share of $0.03 and a revenue of $1.43 billion for the 2nd Quarter of the fiscal year 2016. Avon Products Inc (AVP) declared last quarter earnings on May 05. The Cosmetics & Toiletries company announced last quarter earnings per share of ($0.07) against a consensus Street estimate of $0.02, missing estimate by $0.09. The company posted a revenue of $1.31 billion compared to an estimation of $1.3 billion.
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There are currently fifteen analysts that cover Avon Products Inc stock. Of those fifteen, five have a Buy rating, nine have a Hold rating and one has a Sell rating. On a consensus basis this yields to an Overweight rating. The consensus target price stands at $5.19.
A recent analyst activity consisted of Jefferies who initiated their coverage on the stock with Buy rating on June 3. On the date of report, the stock closed at $4.2.
Citigroup reiterated their Buy stance on May 12, and increased their price target on AVP stock from $5 to $6. This corresponds to a 42.86% upside from the last closing price. On the date of report, the stock closed at $4.21.
Another research firm was Piper Jaffray who downgraded their Overweight rating to Neutral on April 12. On the date of report, the stock closed at $5.01.
Avon Products, Inc. manufactures and direct sells beauty and related products. The Company markets its products to consumers worldwide through independent sales representatives. Avon’s product line includes beauty, fashion and home.