Pressure-sensitive label and packaging materials company Avery Dennison (AVY) - Get Avery Dennison Corporation Report jumped Wednesday after analysts at Baird initiated coverage of the stock with an outperform rating and $125 price target.
The firm found it "particularly impressive" that the company's third-quarter operating results were as strong as they were given macroeconomic headwinds. Baird analyst Ghansham Panjabi believes the strong quarter will be an "incremental positive" for shares.
Avery Dennison reported third-quarter earnings of $1.71 a share Wednesday and lowered the top end of its full-year guidance to between $6.50 and $6.60 a share from its previous view between $6.50 and $6.65.
"We continue to deliver solid profit growth despite soft market demand," said CEO Mitch Butier. "Our focus in this slower growth environment has been to protect our margins in the base business, while driving faster-than-average growth in high value categories like RFID, and we're executing well on both fronts."
Shares rose 7.81% to $127.68 in trading Wednesday.
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