Avon will hit its operating margin target of 14-16% in FY26E, a year early. We lift our FY26-27E revenue forecasts, on average, by 1.3% but operating profit rises by 13.5%; hence a key driver is the drop-through of the savings from the Kaisen continuous improvement programmes and the remodelling of the US manufacturing footprint. Our target price is lifted to 1,650p from 1,500p. We believe the investment case is finely balanced. The Sell case is that Avon’s valuation is full (CY25E PE 25.9x), an ....