Avery Dennison's Price Target Increased to $208 by BofA Analyst

Avery Dennison's (AVY) price target has been increased to $208 by BofA analyst, up from $195, with a Buy rating. The company is undervalued due to its growth prospects, and an uptick in economic conditions is expected to boost its valuation and fundamental strengths. The average target price for AVY is $193.06, with a high estimate of $217.00 and a low estimate of $167.67. The average target implies an upside of 5.94% from the current price of $182.24.

Avery Dennison Corporation (AVY) has seen its price target increase to $208 by a BofA analyst, up from the previous target of $195. The analyst maintains a Buy rating for the company, indicating confidence in its growth prospects and the potential for an uptick in economic conditions to bolster its valuation and fundamental strengths [1].

The average target price for AVY, as per analysts polled by FactSet, stands at $193.06, with a high estimate of $217.00 and a low estimate of $167.67. This average target implies an upside of 5.94% from the current price of $182.24 [2].

Avery Dennison's recent earnings report highlighted a strong first quarter, with earnings per share up 4% excluding currency translation compared to the prior year. The company reported organic sales growth of 2%, driven by higher volume and partially offset by deflation-related price reductions. The adjusted EBITDA margin improved by 10 basis points, reaching 16.4% [3].

The company's stock has received a consensus rating of Moderate Buy, with an average rating score of 2.73. This rating is based on 8 buy ratings, 3 hold ratings, and no sell ratings, reflecting strong analyst interest in the stock [3].

Despite the positive outlook, Avery Dennison faces macroeconomic uncertainties, including an evolving trade policy environment and reduced global GDP growth outlooks. The company also faces potential impacts from recent tariff changes, which could affect material purchases and macro demand. The logistics segment experienced a decline, partially offsetting growth in other areas, and no large-scale rollouts are expected in 2025 [3].

Avery Dennison continues to maintain a strong balance sheet with a net debt to adjusted EBITDA ratio of 2.3, providing investment flexibility. The company returned $331 million through share repurchases and dividends, reducing the share count by 2.3 million shares [3].

The company's dividend payout ratio is at a healthy, sustainable level of 42.26%, and it has been increasing its dividend for 14 years. The dividend yield stands at 1.71%, higher than the bottom 25% of all stocks that pay dividends [3].

References:
[1] https://www.marketscreener.com/quote/stock/AVERY-DENNISON-CORPORATIO-11727/news/BofA-Adjusts-Price-Target-on-Avery-Dennison-to-208-From-195-Maintains-Buy-Rating-50470842/
[2] https://www.gurufocus.com/news/2965782/avery-dennison-avy-price-target-increased-by-bofa-analyst--avy-stock-news
[3] https://www.marketbeat.com/stocks/NYSE/AVY/