ACCO Brands (ACCO) Stock Forecast & Price Target

ACCO Brands is in a strong position for future growth with its strategic focus on technology accessories and recent acquisition that strengthens its presence in this growing market. The company's solid financial performance is supported by its multi-year restructuring program, which has yielded significant cost savings and will continue to benefit profitability. Additionally, the company's management has expressed confidence in improved sales during the next back-to-school season and provided strong guidance for 2026, including a 57% growth in free cash flow. Our estimates have been revised upwards following better-than-expected Q1/26 results, and we are optimistic about the company's long-term outlook as it continues to strategically expand its product portfolio and optimize its operations.

ACCO Brands is facing challenges in its office product categories, with a continued decline in sales that has been partially offset by growth in Latin America and computer accessories in the Americas segment. The company is undergoing a multi-year restructuring program to optimize its manufacturing, which is expected to result in gross margin expansion, but SG&A expenses may increase due to higher incentive compensation. Despite a better-than-expected Q1/26, the stock currently trades at a relatively high EV/NTM EBITDA multiple of 5.8x and our revised price target of $5 still offers upside potential, leading to our OUTPERFORM investment rating.