Mentor, Ohio-based Avery Dennison Corporation (AVY) produces pressure-sensitive materials and a variety of tickets, tags, labels, and other converted products. With a market cap of $13.2 billion, Avery Dennison’s operations span the United States, Europe, the Middle East, North Africa, Asia, Latin America, and internationally.
Avery Dennison has substantially underperformed the broader market over the past year. AVY stock prices have plunged 8.9% on a YTD basis and declined 14.6% over the past 52 weeks, compared to the S&P 500 Index’s ($SPX) 12.3% gains in 2025 and 11% returns over the past year.
Narrowing the focus, Avery has also lagged behind the sector-focused Consumer Discretionary Select Sector SPDR Fund’s (XLY) marginal 51 bps uptick on a YTD basis and 4.9% gains over the past 52 weeks.
Avery Dennison’s stock prices soared 9.5% in a single trading session following the release of its better-than-expected Q3 results on Oct. 22. The company’s Materials Group segment’s sales increased by 1.2% year-over-year, while the Solutions Group segment’s revenues inched up 2%. Overall, the company’s topline grew 1.5% year-over-year to $2.2 billion, beating the Street’s expectations by a thin margin. Meanwhile, its adjusted EPS increased 1.7% year-over-year to $2.37, beating the consensus estimates by 2.2%, boosting investor confidence.
For the full fiscal 2025, ending in December, analysts expect AVY to deliver an adjusted EPS of $9.50, up 74 bps year-over-year. The company has a mixed earnings surprise history. While it missed the Street’s bottom-line estimates once over the past four quarters, it has surpassed the projections on three other occasions.
Among the 13 analysts covering the AVY stock, the consensus rating is a “Moderate Buy.” That’s based on eight “Strong Buys,” one “Moderate Buy,” and four “Holds.”
This configuration is notably more optimistic than a month ago, when only five analysts gave "Strong Buy” recommendations on AVY.
On Oct. 29, Argus Research analyst Alexandra Yates upgraded AVY stock from “Hold” to “Buy” and set a price target of $200.
While AVY’s mean price target of $202.17 represents an 18.6% premium to current price levels, the street-high target of $218 suggests a notable 27.9% upside potential.
On the date of publication, Aditya Sarawgi did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
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