UPDATE: Stifel Nicolaus Upgrades Avon Products to Buy on Favorable Risk/Reward

Stifel Nicolaus upgraded Avon Products

from Hold to Buy and announced a $26.00 price target. Stifel Nicolaus analyst Mark Astrachan noted, "We believe resumption of low single-digit sales growth and low double-digit operating margin is achievable and estimate the company needs to generate an approximate 12% operating margin on 2.5% y/y sales growth through 2016 to achieve our $26 target price. New management has considerable work to do to improve recent underperformance, and a turnaround is not without risk, in our view. That said, we believe risk/reward is favorable at current levels as investors increasingly value Avon on earnings beyond 2013." Avon Products closed at $20.18 on Wednesday.