Sector Snap: Cosmetics Companies

NEW YORK (AP) — An analyst began coverage of cosmetics and personal care companies Thursday, saying they face a tough year but remain attractive long-term investments driven by aging populations and developing markets.

Stifel Nicolaus & Co. analyst Mark Astrachan gave Avon Products Inc., Alberto Culver Co., and Nu Skin Enterprises Inc. "Buy" ratings, and Estee Lauder Cos. and Bare Escentuals Inc. "Hold" ratings.

Astrachan said 2009 will remain difficult for the cosmetic industry, but results should improve sequentially from a bottom in the first quarter. In the long term, Astrachan said the sector remains an attractive area of growth, as populations age and developing markets grow. ...