Analyst Lars Kjellberg of Stifel Nicolaus maintained a Buy rating on Avery Dennison (AVY – Research Report), reducing the price target to $236.00.
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Lars Kjellberg has given his Buy rating due to a combination of factors indicating a positive outlook for Avery Dennison. The company demonstrated impressive performance in 2024, surpassing its initial guidance with significant organic growth and achieving a new high in adjusted EPS, despite economic uncertainties. Although the share price is currently at a 12-month low, largely due to less favorable earnings mix and a slowdown in IL growth, the stock’s valuation appears attractive when considering its historical averages.
Looking forward, Avery Dennison’s guidance for 2025 suggests a promising recovery trajectory, with expectations of accelerating growth throughout the year. The company’s strategic expansion programs and targeted pipeline conversions are expected to support IL growth between 10-15%, which could act as a catalyst for stock revaluation. This combination of strong past performance and potential future growth underpins Kjellberg’s Buy recommendation, highlighting the favorable risk-reward profile of investing in Avery Dennison at this time.
In another report released on February 3, Barclays also maintained a Buy rating on the stock with a $225.00 price target.