Wall Street Zen Upgrades Acco Brands (NYSE:ACCO) to Strong-Buy

Key Points

• Wall Street Zen upgraded Acco Brands to “strong-buy” from “buy,” though the broader analyst consensus remains “Hold” with an average price target of $6.00.
• Acco Brands reported third-quarter EPS of $0.28, beating the $0.19 consensus, and raised full-year guidance to 4%–6% sales growth and adjusted EPS of $0.98–$1.02.
• The improved outlook was supported by tariff refunds and the Trust acquisition, while revenue declined 0.9% year over year and leverage remains notable with a 1.30 debt-to-equity ratio.

Acco Brands (NYSE:ACCO - Get Free Report) was upgraded by investment analysts at Wall Street Zen from a "buy" rating to a "strong-buy" rating in a research note issued on Saturday, Wall Street Zen reports.

A number of other equities research analysts have also recently issued reports on the stock. Weiss Ratings raised shares of Acco Brands from a "hold (c-)" rating to a "hold (c)" rating in a research report on Thursday, September 24th. Barrington Research set a $6.00 price target on shares of Acco Brands in a research report on Wednesday, August 5th. One equities research analyst has rated the stock with a Buy rating and two have assigned a Hold rating to the stock. Based on data from MarketBeat.com, the company presently has a consensus rating of "Hold" and an average price target of $6.00.

Acco Brands Stock Performance

NYSE:ACCO opened at $5.48 on Friday. The stock has a 50 day simple moving average of $4.38 and a 200 day simple moving average of $3.96. The stock has a market cap of $505.86 million, a P/E ratio of 7.83, a PEG ratio of 0.82 and a beta of 1.20. Acco Brands has a 1-year low of $2.81 and a 1-year high of $5.50. The company has a current ratio of 1.97, a quick ratio of 1.22 and a debt-to-equity ratio of 1.30.

Acco Brands (NYSE:ACCO - Get Free Report) last issued its quarterly earnings data on Thursday, October 29th. The industrial products company reported $0.28 EPS for the quarter, beating analysts' consensus estimates of $0.19 by $0.09. The firm had revenue of $380.30 million for the quarter, compared to analyst estimates of $383.70 million. Acco Brands had a return on equity of 13.54% and a net margin of 4.23%. Research analysts anticipate that Acco Brands will post 0.88 earnings per share for the current year.

Institutional Inflows and Outflows

Hedge funds and other institutional investors have recently bought and sold shares of the business. Sequoia Financial Advisors LLC bought a new stake in shares of Acco Brands during the first quarter worth $37,000. Legal & General Group Plc bought a new position in shares of Acco Brands in the 2nd quarter valued at $37,000. Burns Matteson Capital Management LLC bought a new position in shares of Acco Brands in the 3rd quarter valued at $52,000. AXQ Capital LP acquired a new stake in shares of Acco Brands during the 2nd quarter valued at $59,000. Finally, Quantinno Capital Management LP acquired a new stake in shares of Acco Brands during the 1st quarter valued at $60,000. Institutional investors own 84.56% of the company's stock.

Key Stories Impacting Acco Brands

Here are the key news stories impacting Acco Brands this week:

• Positive Sentiment: Adjusted earnings beat expectations. ACCO reported third-quarter adjusted EPS of $0.28, well above the $0.19 analyst consensus and up from $0.21 a year earlier. Operating income increased to $30.3 million from $26.0 million. ACCO Brands Tops Q3 Earnings Estimates
• Positive Sentiment: Guidance was raised. ACCO now expects full-year reported sales growth of 4% to 6% and adjusted EPS of $0.98 to $1.02. The outlook includes a $0.12-per-share benefit from tariff refunds, while the Trust acquisition is expected to provide additional sales growth. ACCO Brands Third-Quarter Earnings Results
• Positive Sentiment: Tariff refunds and the Trust acquisition boosted the outlook. Net tariff refunds contributed $15.1 million to third-quarter operating income, or $0.11 per diluted share. ACCO also completed its Trust acquisition on October 1, expanding the company’s growth platform. Year-to-date free cash flow was $89 million, and cash totaled $174.7 million at quarter-end. ACCO Brands Reports Third-Quarter Results and Closes Trust Acquisition
• Neutral Sentiment: Underlying sales were largely flat. Revenue declined 0.9% year over year to $380.3 million and was slightly below the $383.7 million consensus estimate. This suggests that the earnings beat and improved outlook were driven partly by cost performance, tariff refunds and acquisition benefits rather than broad organic sales growth. ACCO Brands Reports Third-Quarter Sales and EPS
• Negative Sentiment: Some investors may view the earnings quality as less durable. The quarter benefited materially from one-time tariff refunds, while ACCO carries meaningful leverage with a debt-to-equity ratio of 1.30. A recent insider share sale also provides a modest cautionary signal, although it does not establish a broader change in management’s outlook.

About Acco Brands

ACCO Brands Corporation is a global manufacturer and marketer of consumer and office products. Its portfolio includes supplies and equipment used in workplaces, schools and homes, as well as products designed to support organization, productivity and personal technology.

The company's brands include Swingline, Kensington, Mead, Five Star, GBC, Quartet and Esselte. Its products include staplers, punches, shredders, laminators, binding systems, presentation supplies, notebooks, planners, backpacks, computer accessories and other workspace and school supplies.

ACCO Brands traces its history to the American Clip Company, founded in 1903.

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