Avery Dennison price target lowered to $233 from $240 at BMO Capital

BMO Capital analyst John McNulty lowered the firm’s price target on Avery Dennison to $233 from $240 but keeps an Outperform rating on the shares after its Q4 earnings miss and below-consensus guidance. The company was "severely impacted" by the destocking in the Materials and Solutions segments with customers who had over-bought in the first half purging their excess inventory as supply chains improved and demand waned, the analyst tells investors in a research note. The firm believes however that the destocking should be temporary and expects Avery Dennison to return to normal, driving the stock "solidly higher".