Roller coast ride for Avon Products on investor day

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Roller coast ride for Avon Products on investor day

Shares of Avon Products (NYSE:AVP) opened at 2.62 on Friday. 1 brokerage houses have given a strong sell on the shares. The stock's market capitalization is $1.14 billion. Citigroup Inc. raised their price objective on shares of Avon Products from $5.00 to $6.00 and gave the company a buy rating in a report on Friday, December 4th. The company presently has a consensus rating of "Buy" and a consensus price target of $6.95. The analysts also projected the company's long-term growth at 0.40% for the upcoming three to five years.

Avon Products, Inc. manufactures and markets beauty and related products worldwide. According to the report, "AVP outlined a new 3-year transformation plan which aims to produce $350M in savings - sourced from headcount reductions & supply chain rationalization". In the case of earnings surprises, if a company is suggesting a negative earnings surprise it means there are more to come.

Research firm Zacks has rated Avon Products, Inc. (AVP) hosted its 2016 Investor Day at the Company's global Research and Development center in Suffern, NY.

Cerberus, which bought an almost 17 percent stake in Avon last month, said at the company's investor day conference that it would work "hand and glove" with Avon's management to effect a turnaround of the company.

"Our full-year performance is expected to be in-line with our most recent outlook", said Jim Scully, Executive Vice President, Chief Operating Officer and Chief Financial Officer. The Companys segments are -based on geographic operations and include commercial business units in Latin America; Europe, Middle East & Africa; North America, and Asia Pacific.

With beauty such a successful, if competitive, retail space, and considering the popularity of subscription beauty retail like that from the likes of Birchbox, Avon seems well positioned, considering its 130-year-long history and direct sales record. Fashion & Home consists of fashion jewelry, watches, apparel, footwear, accessories, gift and decorative products, housewares, entertainment and leisure products, childrens products and nutritional products.

 

 

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