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Avon Downgraded by UBS

Analyst cites four problems with direct seller.

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By: TOM BRANNA

Editor

Now that Coty’s $10 billion bid for Avon Products is history, the company has to face some stark realites according to one analyst. UBS Securities analyst Nik Modi on Monday cut his rating on the stock to “sell” from “neutral,” noting “it will become obvious that any creditable plan to sustainably fix Avon will require a substantial cut to Avon’s midterm [earnings per share] power.” Modi said Avon’s four “major problems” were “uncompetitive” pay to its representatives, inadequa...

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