Avon Products’s Neutral Rating Reiterated at Zacks (AVP)
Avon Products (NYSE:AVP)‘s stock had its “neutral” rating reissued by Zacks in a research report issued on Wednesday. They currently have a $15.00 target price on the stock. Zacks‘s target price indicates a potential upside of 5.93% from the stock’s previous close.
Zacks’ analyst wrote, “Persistent troubles at Avon resulted in another tough quarter, wherein both top and bottom lines for second-quarter 2014 fell shy of estimates. We remain concerned about the challenges hindering the company’s growth over the past few quarters. These include loss of active representatives, declining volume and unfavorable foreign currency translations, along with reduced margins in mature markets like North America. Moreover, weakness in the emerging markets, like China as well as regulatory and cash flow issues risking dividend are the other negatives. Despite all these adverse factors we have maintained our Neutral recommendation as the company has displayed signs of improving fundamentals of late. We note that Avon has been making significant progress in improving its balance sheet through refinancing activities and cutting costs by slashing jobs and exiting operations in the underperforming markets.”
Avon Products (NYSE:AVP) traded up 0.42% on Wednesday, hitting $14.22. 592,189 shares of the company’s stock traded hands. Avon Products has a one year low of $12.80 and a one year high of $22.86. The stock has a 50-day moving average of $13.83 and a 200-day moving average of $14.3. The company’s market cap is $6.180 billion.
Avon Products (NYSE:AVP) last posted its quarterly earnings results on Thursday, July 31st. The company reported $0.20 EPS for the quarter, missing the Thomson Reuters consensus estimate of $0.21 by $0.01. The company had revenue of $2.20 billion for the quarter, compared to the consensus estimate of $2.23 billion. During the same quarter in the prior year, the company posted $0.29 earnings per share. The company’s quarterly revenue was down 12.8% on a year-over-year basis. On average, analysts predict that Avon Products will post $0.81 earnings per share for the current fiscal year.
The company also recently declared a quarterly dividend, which is scheduled for Tuesday, September 2nd. Shareholders of record on Thursday, August 14th will be given a dividend of $0.06 per share. This represents a $0.24 dividend on an annualized basis and a yield of 1.69%. The ex-dividend date of this dividend is Tuesday, August 12th.
AVP has been the subject of a number of other recent research reports. Analysts at BMO Capital Markets cut their price target on shares of Avon Products from $15.00 to $14.00 in a research note on Wednesday, August 6th. Separately, analysts at Wedbush cut their price target on shares of Avon Products from $15.00 to $14.00 in a research note on Friday, August 1st. Finally, analysts at Bernstein raised their price target on shares of Avon Products from $15.00 to $16.00 in a research note on Friday, August 1st. Seven research analysts have rated the stock with a hold rating and six have given a buy rating to the company’s stock. The company presently has an average rating of “Hold” and an average target price of $17.23.
Avon Products, Inc (NYSE:AVP) is a manufacturer and marketer of beauty and related products.
To view Zacks’ full report, visit Zacks’ official website.
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