UPDATE: BMO Capital Markets Reiterates Outperform Rating, Raises PT on Avon Products on Turnaround Efforts

In a report published Wednesday, BMO Capital Markets reiterated its Outperform rating on Avon Products

, and raised its price target from $23.00 to $25.00. BMO Capital Markets noted, “There are positive indications that AVP's turnaround efforts are starting to have an impact. It reported 4Q adjusted EPS of $0.37 that beat all estimates. The financial cloud is lifting and AVP will redeem the $535 million Private Placement Notes that put it at risk of violating covenants. Though it will repatriate for this redemption if needed, it is also in “advanced” talks to refinance debt of about $905 million that includes near-term maturities and these Notes. After a second major impairment charge, it is looking for strategic alternatives for Silpada. The Venezuela devaluation will have only a minor impact. Working capital at 9.2% of sales is at the lowest level since 4Q08. Sales rose in Latin America and EMEA, markets that account for 75% of sales. Though the US is a strategic priority, it is only 15% of sales and continues to struggle; the fix will take time and investment.” Avon Products closed on Tuesday at $20.79.