Avon Scandal to affect Downgrade Alert for Avon Products (AVP)

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Avon Products (NYSE:AVP) was downgraded from Neutral to Sell at UBS today. The stock closed yesterday at $16.95 on volume of 9.4 million shares, below average daily volume of 10.9 million.According to Money Watch analysts, Avon is currently struggling with past business scandals where they were accused of foreign bribery. Whether or not the scandals are founded in truth, almost doesn't matter as their stock price-point continues its long and steady decline. But some analysts are looking ahead and wondering: if Avon cannot find an appropriate buyer, can they come up with the cash to pay US penalties to the Department of Justice or the Securities and Exchange Commission related to alleged violations of the Foreign Corrupt Practices Act. Currently, a potential upside of 21.9% exists for Avon Products, based on a current level of $16.95 and analysts' average consensus price target of $20.66. The stock should find initial resistance at its 200-day moving average (MA) of $19.55 and further resistance at its 50-day MA of $20.55. For more news and updates, keep it right here to the financial news network.

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