UBS Upgrades Avery Dennison (AVY) to Buy

UBS analyst Joshua Spector upgraded Avery Dennison (NYSE: AVY) from Neutral to Buy with a price target of $218.00 (from $181.00).

The analyst comments: "We upgrade AVY from Neutral to Buy, as we think both RFID and adj EPS growth could inflect higher in 2026. With reasonable assumptions on AVY base growth, we think we can get to ~10% adj EPS growth in 2026E, and then ~12% longer term. This is supported by a new Walmart RFID roll out into bakery, meat, and deli sections of the store which we think can add >10% growth to AVY RFID sales over the next 2 years. RFID sales are still largely to apparel markets (~70%), but the opportunity outside of apparel is nearly 10x. As retailers get past the worst of tariff disruptions, we expect focus will shift back towards efficiency/cost improvements. This should expand AVY's backlog of new RFID deployments & be supportive of longer term growth. An inflection in growth and RFID trends could re-rate the stock ~10%, and we think the market is pricing in minimal forward EPS growth vs our ~11% CAGR."

For an analyst ratings summary and ratings history on Avery Dennison click here. For more ratings news on Avery Dennison click here.

Shares of Avery Dennison closed at $179.04 yesterday.

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