Morgan Stanley Maintains Equal-Weight on Avon Products

Morgan Stanley is out with its report today on Avon Products AVP, maintaining Equal-weight. In a note to clients, Morgan Stanley writes, "We do expect 5% EPS upside versus consensus in the balance of the year, as we believe consensus is mis-modeling positive FX benefits and easier comparisons. However, given our longer-term concerns around EPS quality (weak cash flow, organic sales growth being more than entirely driven by pricing, etc.) and short-term risk from FCPA investigations, as well as a de-risking marketplace sentiment, we remain Equal-weight." Shares of AVP closed Monday at $29.72.