ACCO Brands: Big Upside in Margin Expansion

A Boston presenter likes ACCO Brands (NYSE: ABD, $9.47) at the current level. This leading supplier of office products is finally growing revenues after two difficult years. The new CEO's focus on rebuilding customer relationships is paying off. The company has rationalized its cost structure and can now really lever even a modest top-line expansion. ACCO targets mid-teen operating margins versus 8.6% currently. With another debt refinancing likely in 2013, the earnings power may reach $2.50-$3.00 at $1.6bln - $1.7bln in sales.