Analyst Kevin Steinke of Barrington maintained a Buy rating on ACCO Brands (ACCO – Research Report), reducing the price target to $6.00.
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Kevin Steinke has given his Buy rating due to a combination of factors that highlight both challenges and opportunities for ACCO Brands. Despite a decline in Q1/25 sales, which fell by 11.6% year-over-year on a reported basis, the company managed to exceed expectations in adjusted EBITDA, thanks to effective cost reduction measures and a favorable sales mix. The company’s strategic actions, such as the pull-forward of back-to-school product purchases and growth in the computer accessories segment, have contributed positively to its financial performance.
Additionally, ACCO Brands is benefiting from international expansion, particularly in gaming accessories, and a return to growth in Brazil. Although the company faces macroeconomic uncertainties, which led to the withdrawal of its full-year guidance, the ongoing restructuring program targeting significant cost savings by 2026 is a positive indicator for future profitability. These elements combined suggest potential for stock appreciation, justifying the Buy rating.