Avon’s Price Target Upgraded at Barclays Capital and Merrill Lynch/Bank of America (AVP)

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Beauty products maker Avon Products, Inc. (AVP) caught upgrades on Monday from analysts at Barclays Capital as well as at Merrill Lynch/Bank of America.

Barclays Capital lifted its price target for AVP to $40 from $38, and maintained its 2009 and 2010 EPS estimates of $1.70 and $2.22, respectively. The analyst also reiterated its “Overweight” rating on the stock.

Analysts at Merrill Lynch/Bankof America lifter their price target on Avon to $44. The analyst also raised its earnings estimates and reiterated its “Buy” rating on AVP.

Avon shares, which closed at $34.03 on Friday, were mostly flat in premarket trading Monday.

The Bottom Line
We had removed shares of AVP from our “recommended” list last Oct.2, when shares traded at $41.23. The company has a 2.47% dividend yield, based on Friday’s closing stock price of $34.03. The stock has technical support in the $27-$30 price area. If the shares can firm up, we see overhead resistance around the $36-$40 price range. We would remain on the sidelines for now.

Avon Products, Inc. (AVP) is not recommended at this time, holding a Dividend.com DARS™ Rating of 3.4 out of 5 stars.

Be sure to visit our complete recommended list of the Best Dividend Stocks, as well as a detailed explanation of our ratings system here.