Gas masks maker
That’s unwelcome, and uncertainty as to when orders from non-DoD markets will come through doesn’t help the Protection & Defence (P&D) business either. Still, the smaller but faster growing dairy division had better news on first quarter trade. Its new milking device now has 10 per cent of the lucrative North American market and is expected to keep growing.
Avon’s long-term prospects remain intact, but near-term uncertainty and a three-fold increase in the share price since our original buy tip (93p, 11 May 2010) persuades us it’s time to bank profits. Hold.
Last IC view: Buy, 310p, 23 November 2011