Avery Dennison margin improvement goals constructive, says Loop Capital

Loop Capital keeps a Buy rating and $247 price target on Avery Dennison (AVY) after the company’s Investors Day presentation this week. The management’s strategic roadmap to margin improvement through 2026 is “constructive” for Avery Dennison as it has indicated it will be leaning heavily into automation as a means to reach its margin goals, and RFID-enabled packaging visibility is a key part of that strategy, the analyst tells investors in a research note. Given that UPS already has a structural margin advantage versus its mainstream competitors and intends to further improve margins via automation, other major logistics players will have no choice but to attempt to replicate the UPS (UPS) automation efforts, the firm added.