Avery Dennison Corporation (AVY) Upgraded To Outperform

Analysts at Baird have upgraded the shares of Avery Dennison Corporation (NYSE: AVY) from Neutral to Outperform. Analysts have set a price target of $45 for the Avery Dennison Corporation stock.

Analysts have positive outlook for Avery Dennison based on favorable economic fundamentals, aggressive cost-cutting and accelerated free cash flow generation. Analysts at Baird believe that the volumes for the company bottomed during 2Q09, with Avery Dennison a potential beneficiary of an inventory replenishment cycle, as part of broader economic upturn. The new price target of $45 is based on a multiple of 14x the 2010 EPS estimate of $3.25.