Street Calls of the Week
Investing.com - BMO Capital raised its price target on Avery Dennison (NYSE:AVY) to $210 from $192 on Thursday, while maintaining an Outperform rating on the label and packaging materials company. The new target aligns with analyst consensus, as InvestingPro data shows targets ranging from $170 to $210, with the company currently trading at a P/E ratio of 20.9x.
The price target increase follows several positive developments in Avery Dennison’s Solutions platform, with BMO highlighting a significant business win with Walmart’s meat, deli, and bakery departments.
BMO noted that Avery Dennison has also recaptured some UPS business and provided positive commentary on its pipeline, suggesting double-digit growth in RFID (radio-frequency identification) technology over at least the next two years.
The research firm expects Avery Dennison’s EBITDA to increase due to more aggressive share buybacks, efficiency improvements, and the Taylor acquisition.
These factors collectively point toward Avery Dennison returning to double-digit EPS compound growth and an improved outlook for multiple and valuation recovery, according to BMO Capital.
In other recent news, Avery Dennison reported a strong performance for Q3 2025, surpassing earnings per share (EPS) expectations with a reported $2.37 compared to the anticipated $2.33. The company maintained its revenue forecast at $2.22 billion, which aligns with market expectations. This financial performance reflects positively on the company’s strategic direction. In addition to its earnings report, Avery Dennison received an upgrade from JPMorgan, which raised its stock rating from Neutral to Overweight, highlighting growth opportunities in the RFID food category. UBS also upgraded Avery Dennison’s stock from Neutral to Buy, citing anticipated growth in RFID technology and predicting a 10% increase in adjusted EPS by 2026, potentially rising to 12% in the longer term. These upgrades from prominent investment firms indicate optimism about the company’s future prospects. Avery Dennison’s recent collaboration with Walmart has also been a significant development, contributing approximately $1.2 billion to the company’s market value. These recent developments underscore the company’s potential for growth in the RFID sector.
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