Get 40% Off
🤯 This Tech Portfolio is up 29% YTD! Join Now to Get April’s Top PicksGet The Picks – Just 99 USD

H.B. Fuller stock raised to buy at Citi on valuation and margins

Published 03/02/2023, 14:32
Updated 03/02/2023, 14:32
© Reuters.

© Reuters.

By Senad Karaahmetovic

Citi analysts upgraded H.B. Fuller Company (NYSE:FUL) to Buy from Neutral with a price target raised to $85 per share, up from the prior $72.

The analysts highlighted two key reasons behind the upgrade call: 1) more attractive valuation, and 2) improving margins.

“FUL’s margins will be helped by price-cost and innovation into megatrends, including packaging sustainability, auto/EVs, and clean energy. Plus, China re-opening post CNY and improving growth prospects into 2H is a positive for the highest margin business, Engineering Adhesives, as China accounts for ~30% of segment sales and ~13% for overall FUL,” they wrote in an upgrade note.

The analysts also added that new CEO Mastin’s priorities seem to be tied to margin expansion and organic sales growth.

“Focus is on sustainability initiatives in packaging, including compostable (paper straws) and recyclable glues, in addition to pressure-sensitive adhesives replacing HDPE plastic rings for multipack aluminum cans,” the analysts added.

FUL shares are up 2.5% year-to-date (YTD).

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.