Credit Suisse Lowers Price Target On Avery Dennison Following Modest 4Q Beat

In a report published Tuesday, Credit Suisse analyst John P. McNulty reiterated a Neutral rating on

, but lowered the price target from $58.00 to $56.00. In the report, Credit Suisse noted, “Following AVY's modest 4Q beat and conference call, we are reducing our 1Q and 2015 EPS forecasts to $0.70 and $3.34 (from $0.75 and $3.53 respectively) in-line with mgmt.'s updated guidance of $3.20-$3.40 for the full year 2015. The revisions reflect 1) stronger FX headwinds as a we mark EUR/USD to 1.10 (giving all of our names a bit of a cushion) and 2) more modest growth/margin assumptions in 1H15 in RBIS reflecting a bigger impact from the share loss in the value/contemporary segments (that isn't likely to turn around until at least 2Q), persisting softness in the US retail market, as well as more modest growth in Europe given the softer trends seen in 4Q. Our 2016/2017 estimates move to $4.02/$4.60. With our reduced forecasts we are lowering our target price to $56.” Avery Dennison closed on Monday at $51.20.