Analyst Kevin Steinke of Barrington maintained a Buy rating on ACCO Brands (ACCO – Research Report), with a price target of $7.50.
Kevin Steinke has given his Buy rating due to a combination of factors including ACCO Brands’ strong financial performance and strategic initiatives. Despite a decline in year-over-year sales, the company outperformed estimates and demonstrated resilience in a challenging demand environment. Steinke positively notes ACCO’s successful gross margin restoration, driven by pricing strategies and cost-reduction efforts, which led to significant growth in adjusted operating income and margin expansion. The company’s ability to exceed earnings expectations amidst declining sales volumes and economic headwinds underlines its robust operational efficiency.
Steinke also acknowledges ACCO’s prudent fiscal guidance for 2024, reflecting a cautious yet realistic approach to the ongoing soft demand landscape. The company’s decision to exit certain lower-margin product categories is viewed as a strategic move to enhance overall margins. Furthermore, the anticipation of improved demand trends in the latter half of 2024, coupled with a forecasted rebound in technology spending, provides a basis for ACCO’s potential growth. ACCO’s strategic positioning and management’s confidence in a stronger economic environment contribute to the Buy rating, as Steinke projects a positive outlook for the company’s performance moving forward.
According to TipRanks, Steinke is a 5-star analyst with an average return of 15.3% and a 59.82% success rate. Steinke covers the Industrials sector, focusing on stocks such as ACCO Brands, Cra International, and Quad/Graphics.
In another report released on February 27, Noble Financial also maintained a Buy rating on the stock with a $12.00 price target.
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ACCO Brands (ACCO) Company Description:
ACCO Brands Corp. engages in the manufacture and marketing of office, school, calendar products, and select computer and electronic accessories. It operates through the followings segments: ACCO Brands North America, ACCO Brands EMEA, and ACCO Brands International. The ACCO Brands North America segment includes the U.S. and Canada operations, wherein it manufactures, sources, and sells traditional office products, school supplies, and calendar products. The ACCO Brands EMEA segment deals with the design, sourcing, and distribution of storage and organization products, stapling, punching, laminating, binding and shredding products, do-it-yourself tools, and computer accessories in Europe, the Middle East, and Africa. The ACCO Brands International segments refers to the operations from the rest of the world, primarily Australia/New Zealand, Latin America, and Asia-Pacific The company was founded by Fred J. Kline in 1903 and is headquartered in Lake Zurich, IL.
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