ACCO Brands (ACCO) Stock Forecast & Price Target

ACCO Brands Corp demonstrates a positive outlook driven by successful international expansion of its gaming accessory products and mid-single-digit sales growth in the computer accessories segment, bolstered by a significant B2B order. The return to growth in Brazil, particularly linked to strong back-to-school product performance, further underscores the company's robust market presence. Additionally, improved adjusted EBITDA, resulting from enhanced gross margins linked to cost reduction initiatives and a favorable sales mix, reflects the company's strong operational efficiency and profitability.

ACCO Brands Corp reported a significant decline in adjusted EBITDA, which fell by 26% year-over-year to $20.9 million, despite a slight outperformance relative to expectations, indicating underlying financial pressure. Furthermore, the company's guidance for Q2/25 anticipates a year-over-year sales decline of 8% to 12%, coupled with projected adjusted EPS decreasing from $0.37 in the prior year to a range of $0.28 to $0.32. This situation is exacerbated by a decrease in adjusted EBITDA margin, which declined 130 basis points year-over-year to 6.6%, driven by negative leverage on SG&A expenses stemming from reduced sales.