HB Fuller (FUL) Is Well Positioned for a Recovery - Stifel

Stifel analyst Vincent Anderson reiterated a Buy rating and $54.00 price target on HB Fuller (NYSE: FUL) but cut estimates to reflect a more conservative view of F3Q20 despite the company being well positioned longer term. The Southern Hemisphere COVID slowdowns are unlikely to come with an offsetting surge in HH&C products. Additionally, there is a more conservative view of the Construction recovery as new cases continue to tick higher, creating the potential for Europe to remain seasonally weak despite what would otherwise have been pent-up demand.

The analyst stated "we feel more confident in margin expansion going forward, as F2Q results and commentary, and F3Q20 guidance supports the benefits from cost control measures (as well as raw material benefits), with Construction benefiting most from the realigned portfolio. We maintain our Buy rating as Fuller has demonstrated better earnings visibility, while continuing to execute well on margin expansion initiatives despite the significant demand slowdown, leaving operating leverage primed for a recovery".

For an analyst ratings summary and ratings history on HB Fuller click here. For more ratings news on HB Fuller click here.

Shares of HB Fuller closed at $42.85 yesterday.

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