UPDATE: BMO Capital Markets Downgrades Revlon to Market Perform, Raises PT on Mixed Market Share Performance

In a report published Friday, BMO Capital Markets analyst Connie M. Maneaty downgraded the rating on

from Outperform to Market Perform, but raised the price target from $25.00 to $27.00. In the report, BMO Capital Markets noted, “While we are raising our target by $2 to $27, we are lowering our rating to Market Perform from Outperform. REV is up 75% year to date and 30% since a Barron's article on June 22 highlighted its valuation discount to other cosmetics companies. While the valuation gap has narrowed 0.5 points, a discount is probably warranted given that it is a thinly traded and illiquid controlled entity. REV continues to execute well enough, but its market share performance in US color cosmetics (about half of total sales) is mixed. Revlon continues to gain share in lip make-up, the smallest of the cosmetics categories; it has the No. 1 spot with a share of 23.4% (up 110 bp in the June quarter). It's a tougher fight in the bigger nail, face, and eye categories. It is still the No. 2 player in nail with 7.4%, but L'Oreal's Essie, at 6.9%, is closing in. Revlon is the No. 4 brand in face; its share fell 70 bp to 10.9%, and Revlon is the No. 4 player in eye; its share fell 60 bp to 7.3%.” Revlon closed on Thursday at $25.49.