Update shared on 01 Nov 2025
Fair value Increased 6.69%Analysts have raised their price target for Avery Dennison by approximately $12.70 to $202.36, citing stronger forecasts for revenue growth and recent positive upgrades in their outlook.
Analyst Commentary
Recent analyst updates for Avery Dennison reflect both optimism about the company's near-term prospects and caution regarding potential headwinds that may impact its growth and valuation.
Bullish Takeaways- Bullish analysts highlight improved revenue growth forecasts. This supports upward momentum in the company’s share price.
- There is growing confidence in management’s ability to execute on strategic initiatives. Particular focus is given to operational efficiency and innovation.
- The increased price target signals expectations of continued margin expansion and a positive earnings outlook.
- Long-term growth opportunities in packaging and labeling markets are viewed as supportive for sustained shareholder value.
- Bearish analysts remain cautious about potential macroeconomic pressures that could affect demand in Avery Dennison’s end markets.
- Uncertainty around input costs and supply chain challenges may impact profit margins if not effectively managed.
- Some skepticism persists regarding the pace and consistency of execution on organic growth initiatives.
What's in the News
- Walmart and Avery Dennison have launched a new innovation, bringing RFID-enabled labels to fresh food categories. This development aims to improve inventory management and support sustainability goals in grocery retail (Client Announcements).
- Avery Dennison announced earnings guidance for the fourth quarter of 2025, estimating earnings per share between $2.15 and $2.25, and projected reported sales growth of 5% to 7% (Corporate Guidance, New/Confirmed).
- The company has completed a share repurchase of 605,710 shares, representing 0.78% of shares for $103.13 million, under the buyback announced on April 28, 2025 (Buyback Tranche Update).
- TransAct Technologies has acquired a perpetual license to Avery Dennison’s BOHA! software source code. The company plans to launch its own version in early 2027 for a total consideration of $2.55 million plus transition fees (Client Announcements).
Valuation Changes
- Consensus Analyst Price Target has risen from $189.67 to $202.36. This reflects a higher fair value estimate for Avery Dennison.
- Discount Rate has fallen slightly from 7.11% to 6.99%. This indicates a modestly lower perceived risk in future cash flows.
- Revenue Growth expectations have increased from 4.01% to 4.71%. This suggests a more optimistic outlook for top-line expansion.
- Net Profit Margin projections have declined marginally from 9.22% to 9.12%.
- Future P/E ratio expectations have risen slightly, moving from 18.25x to 18.35x. This points to a modest increase in anticipated valuation multiples.
Disclaimer
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