Wall Street maintains Moderate Buy on Avery Dennison despite share underperformance
Shares have fallen 10% over the past year, lagging the S&P 500 and consumer discretionary sector, yet 14 coverage analysts see upside potential averaging 25.3%.
Wall Street analysts have maintained a consensus "Moderate Buy" rating for Avery Dennison Corporation (AVY), despite the stock’s significant underperformance against broader market indices over the past year. The consensus is derived from 14 coverage analysts, with nine holding "Strong Buy" ratings, one "Moderate Buy," and four "Hold" ratings. This sentiment represents a slight shift towards bullishness compared to two months ago, when eight analysts suggested a "Strong Buy."
Avery Dennison shares have declined 10% over the trailing 12-month period, contrasting sharply with the S&P 500 Index, which rallied nearly 29.6% in the same timeframe. The underperformance is also evident against the Consumer Discretionary Select Sector SPDR Fund (XLY), which gained approximately 13.4% over the past year. On a year-to-date basis for 2026, AVY stock is down 12.1%, while the S&P 500 has risen 9.8%.
The analyst confidence follows strong first-quarter results reported on April 28. Avery Dennison reported adjusted earnings per share of $2.47, beating Wall Street estimates of $2.41. Revenue came in at $2.30 billion, surpassing forecasts of $2.27 billion. The company also provided second-quarter guidance, expecting adjusted EPS to range from $2.43 to $2.53.
Looking ahead to the current fiscal year ending in December, analysts expect diluted EPS to grow 5.5% to $10.05. Avery Dennison has demonstrated a consistent ability to outperform expectations, having beaten the consensus estimate in each of the last four quarters. The company, headquartered in Mentor, Ohio, operates as a global materials science and digital identification solutions provider with a market capitalisation of $12.2 billion.
Price targets reflect a mix of optimism and caution. The mean price target stands at $200.23, implying a 25.3% upside from current levels, with the Street-high target at $221 suggesting a potential 38.3% gain. However, Citigroup analyst Anthony Pettinari maintained a "Neutral" rating on April 30 and lowered the price target to $185, implying a 15.8% upside.
