UPDATE: BMO Capital Markets Downgrades Avon Products Following 3Q Adjusted EPS Report

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

from Outperform to Market Perform, and lowered the price target from $26.00 to $18.00. In the report, BMO Capital Markets noted, “We are lowering our estimates and our rating to Market Perform. AVP reported 3Q adjusted EPS of $0.14, which missed our $0.20 estimate and the $0.19 consensus (range: $0.10-$0.25). The shortfall owed to sales (-$0.02) and SG&A (-$0.09) partially offset by the gross margin (+$0.05). Weakness is pervasive in the troubled markets with local currency sales down 18% in North America (vs. -11%E) and down 19% in Asia Pacific (vs. -8%E). AVP's 10-Q noted in more ominous language than in 2Q that the FCPA settlement would have a more material adverse effect on its financial condition.” Avon Products closed on Thursday at $17.50.