Update shared on 30 Nov 2025
Analysts have raised their price target for Avery Dennison to $202.36 from $200, citing the company's slightly improved financial outlook and recent favorable research upgrades.
Analyst Commentary
Following recent research activity and an improved financial outlook, analysts offer both positive and cautious perspectives on Avery Dennison’s prospects.
Bullish Takeaways- Bullish analysts highlight the company's ability to deliver stable earnings growth, citing its consistent performance and resilience in a dynamic market environment.
- Favorable upgrades reflect confidence in management’s execution and strategic initiatives aimed at expanding the core labeling and materials business.
- Recent research adjustments suggest that valuation remains attractive relative to industry peers, especially given ongoing operational improvements.
- The raised price target signals optimism for further upside as the company continues to innovate and capitalize on global packaging trends.
- Some analysts remain cautious about Avery Dennison’s exposure to cyclical end-markets, which could impact near-term revenue visibility.
- Concerns persist regarding potential margin pressures arising from raw material cost fluctuations and inflationary headwinds.
- Bearish analysts note that while recent upgrades are encouraging, the stock’s valuation may limit substantial upside in the short term if execution risks materialize.
What's in the News
- Walmart and Avery Dennison have launched a new RFID innovation for use in fresh food categories, allowing improved inventory tracking, smarter markdowns, and helping reduce food waste in departments such as bakery, meat, and deli (Key Developments).
- Avery Dennison has completed a share buyback tranche, repurchasing a total of 605,710 shares for $103.13 million as part of its ongoing capital return program (Key Developments).
- The company provided updated financial guidance for the fourth quarter of 2025, expecting earnings per share of $2.15 to $2.25 and reported sales growth of 5% to 7% (Key Developments).
Valuation Changes
- Fair Value Target has increased modestly, rising from $202.36 to $202.36. This reflects minimal movement in analysts' perceived intrinsic value.
- Discount Rate has edged higher, moving from 7.12% to 7.14%. This indicates a marginal adjustment in the risk premium applied to future cash flows.
- Revenue Growth expectations have decreased slightly, shifting from 4.71% to 4.71%. This suggests analysts now anticipate marginally slower topline expansion.
- Net Profit Margin has declined a bit, dropping from 9.12% to 9.11%. This points to a very slight increase in projected cost pressures or moderation in profitability.
- Future P/E Ratio has increased slightly, from 19.50x to 19.54x. This implies a minor uptick in market valuation expectations relative to forecasted earnings.
Disclaimer
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