Based on the provided data and recent analyst reports, here's a concise analysis of AVY's valuation:
Valuation Analysis
AVY currently trades at a P/E of 21.58x (Q4 2024), which shows significant improvement from 32.62x in Q1 2024, indicating better earnings efficiency. The EV/EBITDA ratio has also decreased from 15.86x to 12.53x over the same period, suggesting improved operational efficiency.
Recent Price Movement
The stock closed at $181.70 on February 10, 2025, with a +1.42% gain in regular trading hours.
Analyst Perspectives
Multiple analysts have recently adjusted their price targets:
- Barclays: $225 (previously $245)
- JPMorgan: Upgraded to Overweight with $205 target
- The average analyst consensus shows a Strong Buy rating with a target of $215.25, implying ~18.5% upside potential
Key Concerns
- Recent insider selling activity shows negative sentiment
- Q4 2024 earnings outlook fell below street expectations
- The company's 2025 adjusted EPS guidance of $9.80-$10.20 came in below analyst estimates of $10.44
Conclusion
At current levels, AVY appears fairly valued to slightly overvalued. While the company shows improving operational efficiency and strong analyst support, the lower guidance and insider selling raise some concerns. The current valuation multiples, while improved, are still above historical averages, suggesting limited upside potential in the near term.