-- CFRA, an independent research provider, has providedwith the following research alert. Analysts at CFRA have summarized their opinion as follows:
AVY's Q1 2026 adjusted EPS of $2.47 (+7.4%) exceeded expectations, but organic sales growth of +1.1% and enterprise-wide Intelligent Labels (IL) declining low-single digits reinforce structural concerns, in our view. Materials Group sales rose 11.4% Y/Y to $1.6B with organic growth of +1.9% Y/Y from base categories, while high-value segments declined, and operating margin contracted 20 bps to 15.4%. We remain concerned about underlying demand challenges as Solutions Group sales fell 2.8% Y/Y to $649M with adjusted operating margin compressing 120 bps to 9.0% despite strength in high-value categories. Q2 guidance suggests modest prospects with adjusted EPS of $2.43-$2.53 and sales growth of 2%-4%, though management's continued absence of long-term targets signals limited visibility. IL's weakness across food and logistics (down low-double digits) and mixed apparel performance undermines AVY's key growth driver, while dynamic environment commentary reinforces our view of impaired sustainable recovery prospects.