Shares of Avon Products advanced 4.7 percent Friday after analysts at Jefferies initiated coverage of the stock with a "buy" rating.
"AVP is early in a three-year transformation, but selling [North American business] to Cerberus alleviates cash worries, with remaining int'l business poised for greater growth. Scenario analysis points to favorable risk/reward, with base case suggesting shares could double by end of '17," they said in a note to clients.
Jefferies also placed a $7 price target. On Friday, the stock held near $4.20.
"Buying Avon early in its three-year transformation takes a leap of faith, particularly amid an opaque [short-term] financial outlook. Despite this, we like management's explicit list of priorities for '16 as it lays a road map to reach its very achievable [long-term] targets," Jefferies said.