Avon Shares Drop After Analyst Downplays Its Takeover Prospects

Avon Products Inc. shares tumbled as much as 6.8 percent after Canaccord Genuity said the company’s prospects as a takeover target are probably overblown.

The cosmetics seller may not make sense as an acquisition for rivals in the makeup industry or private-equity buyers, Canaccord analyst Eddy Hargreaves said in a report. He doesn’t have a rating on the company, which lost more than half its value this year. The stock fell as low as $3.86 on Monday in New York.