Avon Products (AVP) Downgraded by Zacks Investment Research to Strong Sell

Zacks Investment Research cut shares of Avon Products (NYSE:AVP) from a hold rating to a strong sell rating in a research report sent to investors on Tuesday morning.

According to Zacks, “Avon underperformed the industry in the past month. Though the company delivered better-than-expected earnings in fourth quarter 2017, it lagged earnings estimates in the preceding five quarters. Moreover, sales reverted to negative surprise trend after a beat in the last quarter owing to declines in both Active and Ending Representatives across most segments. Going forward, management expects sales to remain under pressure due to a tough macro and competitive backdrop, mainly in its largest markets. However, the company remains encouraged by the smooth 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. Further, the company expects execution of significant operational improvements in 2018, despite continued competitive pressures.”

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Other equities analysts have also recently issued reports about the stock. ValuEngine upgraded shares of Avon Products from a hold rating to a buy rating in a research note on Thursday, March 1st. Deutsche Bank boosted their price target on shares of Avon Products from $2.00 to $3.00 and gave the company a hold rating in a report on Friday, February 16th. Royal Bank of Canada reissued a sector perform rating and issued a $2.00 price target on shares of Avon Products in a report on Friday, February 16th. 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, 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. Five investment analysts have rated the stock with a sell rating, three have issued a hold rating and one has given a buy rating to the company’s stock. Avon Products currently has an average rating of Hold and an average price target of $2.47.

NYSE:AVP opened at $2.83 on Tuesday. The firm has a market cap of $1,219.84, a P/E ratio of 47.17, a P/E/G ratio of 1.22 and a beta of 1.42. Avon Products has a one year low of $1.85 and a one year high of $4.89. The company has a quick ratio of 1.05, a current ratio of 1.43 and a debt-to-equity ratio of -2.62.

Avon Products (NYSE:AVP) last released its earnings results on Thursday, February 15th. The company reported $0.12 EPS for the quarter, beating the Thomson Reuters’ consensus estimate of $0.07 by $0.05. The firm had revenue of $1.57 billion during the quarter, compared to analysts’ expectations of $1.60 billion. Avon Products had a net margin of 0.38% and a negative return on equity of 6.19%. The business’s quarterly revenue was up .1% compared to the same quarter last year. During the same period in the prior year, the company earned $0.01 EPS. analysts forecast that Avon Products will post 0.18 earnings per share for the current fiscal year.

Institutional investors have recently made changes to their positions in the business. Mitsubishi UFJ Kokusai Asset Management Co. Ltd. increased its holdings in Avon Products by 169.0% in 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 period. Xact Kapitalforvaltning AB bought a new stake in Avon Products in the 4th quarter valued at $136,000. Schroder Investment Management Group bought a new stake in Avon Products in the 3rd quarter valued at $156,000. Caption Management LLC bought a new stake in shares of Avon Products in the 4th quarter worth about $161,000. Finally, Stone Ridge Asset Management LLC bought a new stake in shares of Avon Products in the 4th quarter worth about $172,000. 83.61% of the stock is currently owned by hedge funds and other institutional investors.

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Avon Products Company Profile

Avon Products, Inc manufactures and markets beauty and related products in Europe, the Middle East, Africa, south Latin America, north Latin America, and the Asia Pacific. The company offers beauty products, including skincare, fragrance, and color cosmetics; and fashion and home products, such as fashion jewelry, watches, apparel, footwear, accessories, gift and decorative products, housewares, entertainment and leisure products, children's products, and nutritional products.

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