Avon Products, Inc. (AVP)
by Zacks Equity ResearchSeptember 24, 2012 | Comments : 0 Recommended this article: (0)
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We believe the company's initiatives to change the product and price mix, improve earnings and reposition the business in the U.S. market will require significant advertising and promotional expenditures, which may weigh upon its margins. Further, we believe sluggish discretionary spending along with intense competition and exposure to foreign currency may undermine the company's future prospects.
Currently, we maintain a long-term Underperform recommendation on the stock. Our long-term Underperform recommendation on the stock indicates that it would perform below the broader market. Our target price of $15.00, 18.1x 2012 EPS reflects this view.