Argus Cuts Avery Dennison Price Target to $175 on Tariff Worries
Argus lowered its price target on Avery Dennison (AVY) to $175 from $190, maintaining a Buy rating, due to tariff concerns.
Key Numbers
Argus Research lowered its price target on Avery Dennison Corporation (NYSE:AVY) to $175 from $190 on June 4, while reiterating a Buy rating. The reduction comes amid growing concerns over the impact of tariffs on the company's operations.
Recommendation Change
- Previous Rating: Buy with a $190 target.
- Current Rating: Buy with a $175 target.
- Change: Target lowered by approximately 7.9%.
Analyst Rationale
Argus cited concerns that tariffs could negatively affect raw material costs and supply chain for Avery Dennison, particularly in its RFID segment. However, the company maintains strong operating cash flow of $1.03 billion over the trailing twelve months, supporting the Buy rating.
Context
AVY shares currently trade near $170, down about 10% year-to-date. Other analysts have mixed views; some believe tariff fears are overblown, while others warn of further margin pressure.
What to Make of It
The stock remains attractive for investors seeking companies with strong cash flows, but tariff risks warrant caution. Investors should monitor trade policy developments and their impact on the company's performance.
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