Avery Dennison pairs a resilient global labeling franchise with faster-growing RFID and Intelligent Labels, while its 5-year base case sees a $417.24 share price before dividends.
Overview
Avery Dennison is a global materials-science and digital-identification leader, founded in 1935, with approximately 35,000 employees and operations in more than 50 countries. Materials Group supplies pressure-sensitive labels and related materials; Solutions Group provides RFID inlays, tags, and identification solutions. Its scale, proprietary adhesive and antenna technologies, and customer integration support #1 positions in pressure-sensitive label materials and UHF RFID, with switching costs in regulated and high-speed packaging applications. FY2025 net sales were $8.86 billion, adjusted EPS $9.53, and GAAP EPS $8.79. Q2 2026 adjusted EPS rose 19.4% year over year to $2.89, beating approximately $2.48 consensus; management raised FY2026 adjusted EPS guidance to $10.00–$10.30 and expects 3%–4% organic sales growth. **The key strategic shift is toward High-Value Categories, already about 45% of revenue, and Intelligent Labels.** At approximately $175, the stock trades at about 17.2x midpoint FY2026 adjusted EPS, below historical peak multiples above 22x. **The report’s five-year base case implies $417.24 per share before dividends**, supported by RFID adoption, mix improvement, and productivity; near-term volatility includes a roughly $0.50 Q3 sequential EPS headwind as Materials inventory pre-buys unwind.