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Investing.com - JPMorgan upgraded Avery Dennison (NYSE:AVY) from Neutral to Overweight and raised its price target to $195.00 from $182.00, citing potential growth in the RFID food category. The $14 billion market cap company, which InvestingPro data shows maintains a GOOD financial health score, has demonstrated remarkable stability with its low beta of 0.95.
The upgrade comes despite Avery Dennison shares already rising 9.5% following the announcement of a Walmart collaboration, which added approximately $1.2 billion to the company’s market value.
JPMorgan noted that Avery Dennison has underperformed the broader market, with its stock down 4.3% year-to-date compared to the S&P 500’s 14% gain, and down 16% over a one-year period versus the S&P 500’s 14.5% increase.
The new price target reflects an EV/EBITDA target multiple of 11.5x, up from the previous 11x multiple, with JPMorgan estimating free cash flow yields of 6.2%, 7.1%, and 7.6% for 2025, 2026, and 2027, respectively.
The firm acknowledged potential risks to its outlook, specifically noting that a new 100% incremental tariff on Chinese apparel imports to the U.S. could disrupt Avery Dennison’s volumes.
In other recent news, Avery Dennison reported a strong performance for the third quarter of 2025, surpassing earnings per share (EPS) expectations with a reported $2.37 compared to the forecasted $2.33. The company maintained its revenue forecast at $2.22 billion, meeting market expectations. Additionally, UBS upgraded Avery Dennison’s stock rating from Neutral to Buy, citing the growth potential of RFID (radio-frequency identification) technology. UBS raised its price target for the company to $218.00 from $181.00. The investment firm anticipates a 10% growth in adjusted EPS by 2026, potentially increasing to 12% in the longer term. These developments reflect a positive outlook for Avery Dennison’s strategic initiatives and financial performance.
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