Avery Dennison assumed with an Outperform at Raymond James

Raymond James assumed coverage of Avery Dennison with an Outperform rating with a price target of $208, up from $200, as part of a broader research note on Packaging names. Heading into earnings, newfound volume concerns are weighing on shares in the group, with investor unease shifting from destocking to the impact of potential consumer weakness, the analyst tells investors in a research note. While Raymond James is adjusting its volume estimates slightly lower in the near term to reflect some conservatism for the second half however, the firm continues to expect a resumption of growth in 2024. The analyst is positive on Avery Dennison’s unique long term growth opportunity in RFID as “underappreciated”, along with stable cash return to shareholders, and also sees the stock as having the most favorable balance sheet amongst the firm’s coverage universe.