In-Depth Examination Of 7 Analyst Recommendations For Avery Dennison

Throughout the last three months, 7 analysts have evaluated Avery Dennison AVY, offering a diverse set of opinions from bullish to bearish.

The following table encapsulates their recent ratings, offering a glimpse into the evolving sentiments over the past 30 days and comparing them to the preceding months.

The 12-month price targets assessed by analysts reveal further insights, featuring an average target of $252.37, a high estimate of $274.60, and a low estimate of $235.00. Highlighting a 0.05% decrease, the current average has fallen from the previous average price target of $252.50.

Decoding Analyst Ratings: A Detailed Look

The standing of Avery Dennison among financial experts is revealed through an in-depth exploration of recent analyst actions. The summary below outlines key analysts, their recent evaluations, and adjustments to ratings and price targets.

Key Insights:

• Action Taken: Analysts frequently update their recommendations based on evolving market conditions and company performance. Whether they 'Maintain', 'Raise' or 'Lower' their stance, it reflects their reaction to recent developments related to Avery Dennison. This information provides a snapshot of how analysts perceive the current state of the company.
• Rating: Gaining insights, analysts provide qualitative assessments, ranging from 'Outperform' to 'Underperform'. These ratings reflect expectations for the relative performance of Avery Dennison compared to the broader market.
• Price Targets: Analysts predict movements in price targets, offering estimates for Avery Dennison's future value. Examining the current and prior targets offers insights into analysts' evolving expectations.

To gain a panoramic view of Avery Dennison's market performance, explore these analyst evaluations alongside essential financial indicators. Stay informed and make judicious decisions using our Ratings Table.

Stay up to date on Avery Dennison analyst ratings.

Unveiling the Story Behind Avery Dennison

Avery Dennison manufactures pressure-sensitive materials, merchandise tags, and labels. The company also runs a specialty converting business that produces radio-frequency identification, or RFID, inlays and labels. Avery Dennison draws a significant amount of revenue from outside the United States, with international operations accounting for the majority of total sales.

Avery Dennison's Financial Performance

Market Capitalization: Exceeding industry standards, the company's market capitalization places it above industry average in size relative to peers. This emphasizes its significant scale and robust market position.

Revenue Growth: Over the 3 months period, Avery Dennison showcased positive performance, achieving a revenue growth rate of 6.93% as of 30 June, 2024. This reflects a substantial increase in the company's top-line earnings. In comparison to its industry peers, the company stands out with a growth rate higher than the average among peers in the Materials sector.

Net Margin: Avery Dennison's net margin lags behind industry averages, suggesting challenges in maintaining strong profitability. With a net margin of 7.91%, the company may face hurdles in effective cost management.

Return on Equity (ROE): Avery Dennison's ROE falls below industry averages, indicating challenges in efficiently using equity capital. With an ROE of 7.87%, the company may face hurdles in generating optimal returns for shareholders.

Return on Assets (ROA): Avery Dennison's ROA falls below industry averages, indicating challenges in efficiently utilizing assets. With an ROA of 2.14%, the company may face hurdles in generating optimal returns from its assets.

Debt Management: With a below-average debt-to-equity ratio of 1.41, Avery Dennison adopts a prudent financial strategy, indicating a balanced approach to debt management.

How Are Analyst Ratings Determined?

Within the domain of banking and financial systems, analysts specialize in reporting for specific stocks or defined sectors. Their work involves attending company conference calls and meetings, researching company financial statements, and communicating with insiders to publish "analyst ratings" for stocks. Analysts typically assess and rate each stock once per quarter.

Some analysts will also offer forecasts for metrics like growth estimates, earnings, and revenue to provide further guidance on stocks. Investors who use analyst ratings should note that this specialized advice comes from humans and may be subject to error.

Which Stocks Are Analysts Recommending Now?

Benzinga Edge gives you instant access to all major analyst upgrades, downgrades, and price targets. Sort by accuracy, upside potential, and more. Click here to stay ahead of the market.

This article was generated by Benzinga's automated content engine and reviewed by an editor.