KeyBanc Assumes Coverage on Valspar (VAL) at Hold; Several Near-Term Cross-Currents Put Us on the Sidelines
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Price: $89.00 +2.39%
Rating Summary:
0 Buy, 11 Hold, 8 Sell
Rating Trend:
Up
Today's Overall Ratings:
Up: 12 | Down: 15 | New: 40
Rating Summary:
0 Buy, 11 Hold, 8 Sell
Rating Trend:
Up
Today's Overall Ratings:
Up: 12 | Down: 15 | New: 40
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KeyBanc assumes coverage on Valspar (NYSE: VAL) with a Hold (previous analyst rated shares BUY).
KeyBanc analyst says, "Our cautious outlook is based on the following factors: 1) the Company's exposure to global industrial coatings (about 30% of sales), which includes coil coatings, wood coatings and other general industrial coatings, such as powder coatings; and 2) DIY architectural coatings in the United States is hampered by escalated raw material costs and a weak U.S. consumer and housing market. On the other hand, new product introductions (container coatings, packaging coatings and higher end DIY paint) should be additive to both sales and profitability. The Company's Chinese architectural business should continue to grow and its market-leading position in global packaging coatings should remain highly profitable regardless of any meaningful slowdown in the global economic landscape. Lastly, bolt-on acquisitions, share buybacks and funding the dividend will be priorities for its cash flow and could limit some of the downside risk associated with shares of VAL."
For more ratings news on Valspar click here and for the rating history of Valspar click here.
Shares of Valspar closed at $32.09 yesterday.
KeyBanc analyst says, "Our cautious outlook is based on the following factors: 1) the Company's exposure to global industrial coatings (about 30% of sales), which includes coil coatings, wood coatings and other general industrial coatings, such as powder coatings; and 2) DIY architectural coatings in the United States is hampered by escalated raw material costs and a weak U.S. consumer and housing market. On the other hand, new product introductions (container coatings, packaging coatings and higher end DIY paint) should be additive to both sales and profitability. The Company's Chinese architectural business should continue to grow and its market-leading position in global packaging coatings should remain highly profitable regardless of any meaningful slowdown in the global economic landscape. Lastly, bolt-on acquisitions, share buybacks and funding the dividend will be priorities for its cash flow and could limit some of the downside risk associated with shares of VAL."
For more ratings news on Valspar click here and for the rating history of Valspar click here.
Shares of Valspar closed at $32.09 yesterday.
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