Is Wall Street Bullish or Bearish on Avery Dennison Stock?

Company Overview - Avery Dennison Corporation (AVY) has a market cap of $15.2 billion and specializes in pressure-sensitive labeling, packaging materials, and functional materials across various markets including consumer goods, retail, logistics, and industrial sectors [1] Stock Performance - Over the past year, AVY has underperformed the broader market, with stock prices increasing by 6.9% compared to the S&P 500 Index's 13% gains [2] - In 2026, AVY stock surged by 8.3%, surpassing the marginal rise of the S&P 500 Index [2] - AVY also underperformed the State Street Consumer Discretionary Select Sector SPDR Fund (XLY), which saw a 4.7% increase over the past year, but outperformed its 1.6% year-to-date dip [3] Earnings Report - On February 4, Avery Dennison reported its fiscal 2025 fourth-quarter earnings, with revenue rising 3.9% year over year to $2.27 billion, slightly below expectations [5] - Adjusted EPS for the quarter was $2.45, an increase of 3% that topped estimates [5] - Operating margins compressed year over year due to deflation-related pricing and tariff headwinds, despite low-single-digit volume gains, particularly in Materials [5] Future Projections - For the current year ending in December, analysts expect AVY to deliver an adjusted EPS of $10.13, reflecting a 6.3% year-over-year increase [6] - The company has a mixed earnings surprise history, missing bottom-line estimates once in the past four quarters but surpassing projections three times [6] Analyst Ratings - Among the 13 analysts covering AVY stock, the consensus rating is a "Moderate Buy," consisting of eight "Strong Buys," one "Moderate Buy," and four "Holds" [6] - On February 10, JPMorgan analyst Jeffrey Zekauskas reiterated an "Overweight" rating on Avery Dennison and raised the price target to $205 from $195, indicating continued confidence in the company's outlook [8] - The mean price target of $209.50 represents a 6.4% premium to current price levels, while the street-high target of $233 suggests an 18.3% upside potential [8]