Bull of the Day: Avery Dennison (AVY)
by Zacks Equity ResearchDecember 26, 2012 | Comments : 0 Recommended this article: (0)
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In the quarter, net sales grew approximately 6% on an organic basis, attributed to increased volumes in pressure sensitive materials and a rebound in the core business of retail branding and information solutions. Avery's restructuring initiatives is expected to deliver annualized savings of more than $100 million in 2013.
Furthermore, with the divestiture of the underperforming Office and Consumer Products unit, the company will be able to focus on its two core businesses. Given the positives, we have upgraded our recommendation from Underperform to Outperform with a target price of $42.