Citi raises Avery Dennison stock price target to $191 on solid Q2 results

Published 23/07/2025, 10:48
Citi raises Avery Dennison stock price target to $191 on solid Q2 results

Investing.com - Citi raised its price target on Avery Dennison (NYSE:AVY) to $191.00 from $185.00 while maintaining a Neutral rating following the company’s second-quarter earnings report. The company, which currently trades at a P/E ratio of 20.07 and maintains a "GOOD" financial health score according to InvestingPro, has demonstrated consistent financial stability with a 55-year track record of maintaining dividend payments.

Avery Dennison shares increased 1.5% after the company reported solid second-quarter results and provided a third-quarter outlook that was slightly better than feared, according to Citi.

The research firm noted that underlying demand for apparel improved sequentially from April to June, with management comfortable applying the June exit rate of -3% year-over-year across the third quarter based on flat month-to-date results in July.

Beyond apparel, Citi forecasts that Avery Dennison’s Materials segment will return to year-over-year EBIT growth in the third quarter on neutral price net of raw materials, with modest help from volume and foreign exchange.

The Solutions segment is holding up well despite market uncertainty, with gains at Vestcom, including a rollout with CVS, and Embelex’s branding ahead of the 2026 World Cup nearly stabilizing the topline, Citi reported.

In other recent news, Avery Dennison Corp reported its second-quarter earnings for 2025. The company achieved an adjusted earnings per share (EPS) of $2.42, which exceeded the forecast of $2.39. However, Avery Dennison’s revenue fell short of expectations, coming in at $2.22 billion compared to the anticipated $2.24 billion. These results highlight the mixed performance for the quarter, with an EPS beat but a revenue miss. Additionally, the company faces challenges within its Intelligent Labels platform. Despite these developments, the stock experienced a pre-market decline. Investors may find it noteworthy that the earnings performance reflects broader market trends impacting the company.

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