Revlon Falls on Goldman Downgrade

Shares of Revlon declined after a Goldman Sachs analyst cut her rating on the cosmetics maker, citing long-term growth concerns.

Revlon has traded between 76 cents and $3.95 in the past 52 weeks, and is down 47 percent from the beginning of the year.

Goldman Sachs analyst Lori Scherwin in a client note cut her rating to "Sell" from "Neutral," saying shares have recently reclaimed some ground.

"This, coupled with our ongoing concerns of the long-term sustainability of business trends, has made the stock look expensive in our opinion and is the basis for our downgrade," wrote Scherwin. "This is a longer-term call."

The company has turned focus back to its core Revlon brand, but the analyst is skeptical of a recovery for the stock due to heavy competition and a lack of innovative new products.

In the near-term, shares could see some support if margins improve markedly in 2007, but this is already priced into the stock's price, she wrote. Scherwin lifted the stock's target price to $1.30 from $1.