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With a market cap of $13.5 billion, Avery Dennison Corporation (AVY) is a global materials science and manufacturing company. The Ohio-based company specializes in the design and production of a wide range of labeling and functional materials used in consumer products, apparel, logistics, industrial applications, and healthcare.
Shares of AVY have underperformed the broader market over the past year. AVY has declined 20.3% over this time frame, while the broader S&P 500 Index ($SPX) has rallied nearly 15.2%. In 2025, AVY stock is down 7.4%, compared to SPX’s 10.2% rise on a YTD basis.
Narrowing the focus, AVY has also trailed the Consumer Discretionary Select Sector SPDR Fund (XLY), which has gained 25.7% over the past year and 4.2% in 2025.
On Aug. 25, Avery Dennison announced a $390 million acquisition of Meridian Adhesives Group’s U.S. flooring adhesives business, which is expected to generate $110 million in 2025 revenue with strong margins. Despite the deal’s strategic fit and focus on high-value categories, shares fell about 1.5% post announcement, as investors reacted cautiously to integration risks, near-term costs, and ongoing demand softness in core markets.
For fiscal 2025, ending in December, analysts expect AVY’s EPS to grow marginally to $9.50 on a diluted basis. The company’s earnings surprise history is mixed. It beat the consensus estimate in three of the last four quarters, while missing on another occasion.
Among the 13 analysts covering AVY stock, the consensus is a “Strong Buy.” That’s based on five “Strong Buy” ratings, one “Moderate Buy,” and seven “Holds.”
This configuration is less bullish than a month ago, with six analysts suggesting a “Strong Buy” for the stock.
On Jul. 23, BMO Capital lowered its price target on Avery Dennison from $216 to $207 while maintaining an “Outperform” rating.
The mean price target of $199.50 represents a 15.1% premium to AVY’s current price levels. The Street-high price target of $223 suggests an upside potential of 28.7%.
