UPDATE: Credit Suisse Initiates Coverage on Avon Products on Two Steps Forward, One Step Back

In a report published Tuesday, Credit Suisse analyst Michael Steib initiated coverage on

with a Neutral rating and $19.00 price target. In the report, Credit Suisse noted, “AVP's new management is making progress, albeit unevenly, toward its long term goals of midsingle-digit sales growth and double-digit margins. That said, consensus EPS growth expectations are ambitious, in our view, particularly in light of the more recent sales trends. Given the still considerable challenges ahead, investors need to continue to expect a high degree of volatility. While this report addresses the fundamentals of AVP's business, the stock is unlikely to trade on fundamentals until the FCPA overhang is resolved.” Avon Products closed on Monday at $17.12.