ACCO Brands (ACCO) Stock Forecast & Price Target

ACCO Brands Corp has demonstrated a positive financial trajectory, highlighted by mid-single-digit sales growth in its computer accessories segment and a successful return to growth in Brazil, driven by robust back-to-school product sales. The company's international expansion of gaming accessory products has also yielded encouraging results, contributing to its overall growth strategy. Additionally, the favorable adjusted EBITDA performance, attributed to improvements in gross margin and effective cost reduction measures, further supports a strong outlook for the company's financial health.

ACCO Brands Corp reported a significant decline in Q1/25 adjusted EBITDA, which fell by 26% year-over-year to $20.9 million despite exceeding estimates, indicating underlying operational challenges even as it outperformed some expectations. The company has guided for a further decline in sales for Q2/25, projecting a decrease of 8% to 12% year-over-year, alongside expected adjusted EPS of $0.28 to $0.32 compared to $0.37 in the prior year, signaling an ongoing struggle in maintaining profitability. Additionally, the adjusted EBITDA margin declined by 130 basis points year-over-year to 6.6%, reflecting the adverse impact of negative SG&A expense leverage as a result of lower sales, suggesting potential difficulties in managing costs effectively amid declining revenue.