Barclays analyst Michael Leithead maintains $Avery Dennison (AVY.US)$ with a buy rating, and adjusts the target price from $250 to $245.
According to TipRanks data, the analyst has a success rate of 55.4% and a total average return of 4.0% over the past year.
Furthermore, according to the comprehensive report, the opinions of $Avery Dennison (AVY.US)$'s main analysts recently are as follows:
Avery Dennison's entry into extensive food markets has been marked by its recent RFID agreement with Kroger, signaling its initial foray into this sector. However, the company is anticipated to encounter challenging comparisons in intelligent labels logistics towards the second half of 2024. A more cautious stance is adopted for now, pending a clearer insight into the evolving business dynamics.
Despite Avery Dennison recording a slight overperformance and introduction of a new platform for grocery stores, the share prices experienced a decline. This was partly due to the current challenges faced by the Vestcom platform and worries about a temporary setback in RFID logistics. These concerns have led some investors to conclude that the RFID growth narrative might be concluding, or that Avery Dennison is losing its market share. Contrary to these investor beliefs, the analyst perceives these issues as temporary, emphasizing that the company's Materials division is on solid ground and the increasing uses for RFID technology are expected to drive revenue growth and enhance profit margins, positioning the company for potential outperformance by 2025.
Note:
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Success rate is the number of the analyst's successful ratings, divided by his/her total number of ratings over the past year. A successful rating is one based on if TipRanks' virtual portfolio earned a positive return from the stock. Total average return is the average rate of return that the TipRanks' virtual portfolio has earned over the past year. These portfolios are established based on the analyst's preliminary rating and are adjusted according to the changes in the rating.
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