Credit Suisse Raises AVY PT To $47 From $41

Credit Suisse is raising its 12-month price target on Avery Dennison Corporation AVY to $47 (from $41) “as we roll our target multiple of roughly 7X to our 2012 estimates and assume the bulk of AVY's free cash flow goes toward reducing net-debt over the next 12-months, which offers ~13% upside (including the 1.9% dividend yield).” “Our price target reflects a discount to the historical average (7X vs. the average of 8.6X over the past five years), taking into account the difficult raw material environment as well as the new competitive threat and risk to returns in the Office Products segment (AVY's most profitable business),” Credit Suisse writes. “With this in mind, we believe AVY will perform in-line with the broader chemical space.” Avery Dennison Corporation currently trades at $42.06.