ACCO Brands (ACCO) Stock Forecast & Price Target

ACCO Brands Corp demonstrates a positive financial outlook supported by mid-single-digit sales growth in its computer accessories segment, bolstered by a significant B2B order, alongside a strong rebound in Brazil's market attributed to effective back-to-school products. The company’s international expansion in the gaming accessory sector has yielded favorable results, enhancing its market presence. Furthermore, an increase in adjusted EBITDA, fueled by improved gross margins from cost reduction initiatives and a strong sales mix, reflects the company’s operational efficiency and resilience in challenging market conditions.

ACCO Brands Corp reported a significant decline in Q1/25 adjusted EBITDA, falling 26% year-over-year to $20.9 million, despite exceeding internal estimates amid lower-than-expected sales. The company's Q2/25 guidance indicates anticipated sales declines of 8% to 12% year-over-year and adjusted EPS projections of $0.28 to $0.32, compared to $0.37 in the prior year. Additionally, the adjusted EBITDA margin decreased by 130 basis points to 6.6%, reflecting the adverse impact of increased SG&A expenses that were not offset by gross margin improvements.