UPDATE: Bank of America Upgrades Avery Dennison Corporation to Neutral, Raises PT

In a report published Wednesday, Bank of America upgraded its rating on Avery Dennison Corporation (NYSE: AVY) from Underperform to Neutral, and raised its price target from $35.00 to $39.00.Bank of America noted, “We are moving to a Neutral rating from Underperform following the company's reported 4Q earnings and 2013 outlook. Our Underperform call on AVY was based on our view that earnings would be susceptible to economic risks. But AVY has outperformed our forecasts for two straight quarters and is guiding ahead of our 2013 forecast. Therefore, we want to reassess our thesis and move to a Neutral. We are raising our target multiples to reflect a more normalized environment and increasing our normalized free cash flow (FCF) estimate to $350mn from $300mn. Our PO moves to $39 from $35. We will refine our forecasts and calculations after the call.”Avery Dennison Corporation closed on Tuesday at $38.50.