Bank of America Securities analyst George Staphos has reiterated their bullish stance on AVY stock, giving a Buy rating today.
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George Staphos has given his Buy rating due to a combination of factors, primarily focusing on the improving trends and potential growth in Avery Dennison’s Intelligent Labels (IL) segment. The recent collaboration with Walmart on IL, particularly in the food sector, is expected to generate significant revenue over the next two years, which could also encourage other retailers to adopt similar technologies.
Additionally, the IL segment showed growth in the third quarter, with expectations for even better performance in the fourth quarter. Despite some pricing competition in base materials, these developments, along with stable earnings forecasts and a slight increase in the price objective, support the Buy rating. The anticipated earnings boost from the Walmart collaboration further strengthens the positive outlook for Avery Dennison.
Staphos covers the Consumer Cyclical sector, focusing on stocks such as International Paper Co, Packaging, and Sonoco Products. According to TipRanks, Staphos has an average return of 4.1% and a 50.83% success rate on recommended stocks.
In another report released today, J.P. Morgan also upgraded the stock to a Buy with a $195.00 price target.