Jefferies has started covering Avery Dennison (AVY, Financial) with a Hold rating, setting a price target of $175. Despite the company's strong track record of growth and improved profit margins over the past decade, analysts anticipate a challenging year in 2025. This expectation is due to the impact of tariffs and the uncertainty from ongoing trade disputes, which could significantly affect the company's operations in emerging markets, accounting for approximately 40% of its exposure.
Moreover, Avery Dennison's substantial involvement in the apparel, industrial, and logistics sectors—comprising 55% of its market presence—may also face headwinds from the current macroeconomic conditions. Investors are advised to consider these factors as the company navigates a potentially volatile environment over the next few years.
