Avery Dennison Price Target Lowered: Raymond James Cuts Estimate to $208

Raymond James has lowered its price target for Avery Dennison (AVY) to $208 from $218, citing several factors that could impact the company's long-term growth prospects. The investment firm's analysts have identified a few key factors that may influence Avery Dennison's stock price in the near and long term.

Firstly, Raymond James highlighted the slowdown in the global economy, which is expected to continue and may impact Avery Dennison's sales and earnings growth. This is evident in the company's fourth quarter 2024 results, where sales growth was lower than expected due to weaker demand in certain markets. Avery Dennison's management acknowledged this challenge, stating that the company's industries were recovering from downstream inventory destocking last year, but the recovery was not as strong as initially anticipated (Avery Dennison, 2025).

Secondly, Raymond James noted the impact of currency headwinds on Avery Dennison's international operations. The strengthening of the U.S. dollar against other currencies has created headwinds for the company's sales growth. This is reflected in the company's fourth quarter 2024 results, where sales growth was negatively impacted by currency fluctuations (Avery Dennison, 2025).

Raw material cost pressures have also been a significant factor affecting Avery Dennison's margins. The company faces ongoing raw material cost pressures, which have impacted its margins in recent quarters. In the fourth quarter of 2024, Avery Dennison's adjusted EBITDA margin decreased by 40 basis points compared to the prior year, primarily due to higher employee-related costs and growth investments (Avery Dennison, 2025).

Lastly, Raymond James pointed out the slowdown in Avery Dennison's high-value categories, such as IL apparel and general retail. Sales in these high-value categories were down mid-single digits ex-currency in the fourth quarter of 2024, as strong growth in IL apparel and general retail was more than offset by IL logistics and other high-value solutions (Avery Dennison, 2025).



Despite these challenges, Avery Dennison's management remains confident in the company's ability to meet its long-term goals for superior value creation. The company's strong earnings growth and sales performance in recent quarters suggest that it is well-positioned to navigate the current market environment and continue its long track record of strong earnings growth (Avery Dennison, 2025).

Analysts' price targets for Avery Dennison stock range from $202 to $274.6, with an average target of $228.96, indicating a potential increase of 23.28% from the current stock price of $185.73. However, these targets are subject to change based on the company's performance, market conditions, and other factors. In the long term, Avery Dennison's ability to execute its strategies, innovate, and adapt to market changes will be crucial in determining the company's stock price performance.

As an investor, it is essential to stay informed about the key factors driving Avery Dennison's stock price and make informed decisions based on the company's financial performance, earnings guidance, and market conditions. By understanding the potential risks and opportunities facing the company, investors can better navigate the market and capitalize on long-term growth prospects.