Zacks Investment Research Upgrades Avon Products (AVP) to Hold
Zacks Investment Research upgraded shares of Avon Products (NYSE:AVP) from a sell rating to a hold rating in a research report released on Wednesday.
According to Zacks, “Avon outperformed the industry in the past month 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 previous 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. Nevertheless, it expects execution of significant operational improvements in 2018, despite continued competitive pressures.”
Other equities analysts also recently issued reports about the company. ValuEngine raised Avon Products from a hold rating to a buy rating in a research note on Thursday, March 1st. DA Davidson reissued a buy rating and set a $2.00 target price on shares of Avon Products in a research note on Monday, November 20th. Deutsche Bank increased their target price on Avon Products from $2.00 to $3.00 and gave the stock a hold rating in a research note on Friday, February 16th. Royal Bank of Canada reissued a sector perform rating and set a $2.00 target price on shares of Avon Products in a research note on Friday, February 16th. Finally, Jefferies Group set a $2.00 target price on Avon Products and gave the stock a sell rating in a research note on Thursday, February 15th. Four analysts have rated the stock with a sell rating, four have given a hold rating and one has issued a buy rating to the company’s stock. The stock has a consensus rating of Hold and a consensus target price of $2.47.
Avon Products (NYSE:AVP) last posted its quarterly earnings data on Thursday, February 15th. The company reported $0.12 earnings per share for the quarter, topping analysts’ consensus estimates of $0.07 by $0.05. Avon Products had a negative return on equity of 6.19% and a net margin of 0.38%. The company had revenue of $1.57 billion during the quarter, compared to analysts’ expectations of $1.60 billion. During the same period last year, the firm earned $0.01 EPS. The firm’s revenue for the quarter was up .1% on a year-over-year basis. equities analysts predict that Avon Products will post 0.18 earnings per share for the current fiscal year.
Several hedge funds have recently modified their holdings of the company. Yacktman Asset Management LP raised its stake in shares of Avon Products by 2.7% during the 4th quarter. Yacktman Asset Management LP now owns 19,641,467 shares of the company’s stock worth $42,229,000 after buying an additional 509,083 shares in the last quarter. Investec Asset Management LTD increased its stake in Avon Products by 54.4% in the 4th quarter. Investec Asset Management LTD now owns 12,369,917 shares of the company’s stock valued at $26,595,000 after purchasing an additional 4,359,067 shares in the last quarter. Renaissance Technologies LLC increased its stake in Avon Products by 47.6% in the 4th quarter. Renaissance Technologies LLC now owns 11,914,500 shares of the company’s stock valued at $25,616,000 after purchasing an additional 3,842,800 shares in the last quarter. Shah Capital Management increased its stake in Avon Products by 15.1% in the 4th quarter. Shah Capital Management now owns 8,014,702 shares of the company’s stock valued at $17,231,000 after purchasing an additional 1,052,412 shares in the last quarter. Finally, Dimensional Fund Advisors LP increased its stake in Avon Products by 2.5% in the 3rd quarter. Dimensional Fund Advisors LP now owns 7,899,310 shares of the company’s stock valued at $18,406,000 after purchasing an additional 193,839 shares in the last quarter. 82.42% of the stock is owned by institutional investors and hedge funds.
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Avon Products Company Profile
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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