CEO Andrea Jung has transformed Avon Products (AVP) over the last nine years. The company has grown aggressively in the Beauty products category, especially overseas in developing markets. Management instilled financial discipline in the company through the multi-year supply chain cost reduction program along with the Product Line Simplification (PLS) and Strategic Sourcing Initiatives (SSI). Avon is an above-average growth company among its peers, but there are inherent risks associated with the direct sales business model and the dependence on developing markets for growth. The annualized cost savings associated with Product Line Simplification (PLS) initiative and Strategic Sourcing Initiative (SSI) are above expectations. The target price of $36.25 is based on a 22 P/E on trailing 12-month earnings. The Buy rating is maintained. Zacks Investment Research