Jefferies Has $43 Target, Buy Rating On Avon (AVP)

Jefferies & Co. is raising its 2011 earnings estimates on Avon Products AVP after the consumer products maker continued its string of strong quarterly earnings reports. Jefferies rates shares as a Buy and has a $43 price target. In a note to investors Jefferies writes, "Broadly speaking, business momentum at Avon seems very much intact, with key indicators trending about in line. Maintaining 2010E on the in line quarter, and raising 2011E by +$0.05 to account for Silpada accretion. We believe AVP shares remain attractively valued given continued solid organic growth trends and improving profitability." "Our 2010E remains $2.10, as 2Q ongoing EPS of $0.48 was in line with our forecast. Our quarterly and 2011E ests change as follows: • 3QE remains $0.50 v $0.42, up +19% • 4QE goes from $0.78 to $0.79 v $0.68, up +16%. • 2011E goes from $2.40 to $2.45, up +16.7% from our 2010E of $2.10. The $0.05 increase is due to a full year's accretion from the just closed acquisition of Silpada Designs." Shares of Avon are up 0.67% to $31.34