From Financial Modeling Prep: 2024-10-17 12:44:00

BofA Securities analysts upgraded Avery Dennison (NYSE:AVY) to Buy from Underperform, with a new price target of $250. The decision reflects optimism about market conditions and the company’s strong position in e-commerce and packaging markets.

Avery Dennison shares had underperformed by 15% year-to-date, but signs of improvement in box markets and e-commerce are expected to drive higher demand for label and packaging materials. Bank of America projects positive impacts on corrugated shipments and Avery’s label-related business lines.

Avery Dennison’s diverse product portfolio, especially in value-added pressure-sensitive materials, gives it a competitive edge over European peers. Strong forecasts for Economic Value Added (EVA) and Return on Invested Capital (ROIC) indicate sustained financial health and growth potential.

Investor concerns arose after a European competitor reported weaker results, but Avery Dennison’s recent analyst day provided a strategic outlook for its Materials segment. This reinforced BofA’s upgraded outlook and confidence in Avery’s market positioning as demand recovers.



Read more at Financial Modeling Prep:: Avery Dennison Earns an Upgrade at BofA Securities