Analyst Cuts Avery Dennison to Neutral

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A JP Morgan Securities analyst on Tuesday cut his rating on shares of Avery Dennison Corp. to “neutral” from “overweight,” saying growth for the Pasadena label and retail tag maker was expected to be flat at best next year.

Likely negative GDP growth in the United States and similar trends in Europe will probably pressure consumer spending over the next 12 months, said analyst Jeffrey Zekauskas in a note to clients.

Though Avery stock had outperformed the S & P; 500 by 300 basis points this year, Zekauskas said he expects a 2 percent volume reduction in the company’s office products segment, and cut his full year earnings per share estimate to $3.40 from $3.45.

Avery Dennison shares closed down $1.52, or 4 percent, to $36.36 in Tuesday trading on the New York Stock Exchange. The share price is down 41 percent from the first of the year.

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