Barclays Maintains an 'Equalweight' on Valspar (VAL); Strong Q4, Even Stronger '12 Guidance

Barclays maintains an 'Equalweight' on Valspar (NYSE: VAL) price target raised from $35 to $40.

Barclays analyst says, "VAL reported Q4'11 EPS (FY end 10/31) of $0.84. A beat versus our and consensus estimates of $0.70. Overall EBIT was in line with our expectations, while lower-than-expected taxes accounted for 12 c/sh, lower share count added 1 c/sh and lower interest added 1 c/sh. Sales were up 19.4% due mainly to acquisitions (+11.3%) and currency (+3.1%), however "core" growth (price+vol) decelerated in the quarter, with the paints segment up 1.4% and the coatings segment up 7.9%, predominately due to increases in pricing."

"VAL introduced FY'12 guidance of $2.87- $3.07. Overall, we believe that VAL will
continue to fare well in what's been a weak demand environment in some of its end markets, and should begin to benefit from a reduction in raw material cost increases as mentioned above. We have increased our '12E EPS from $2.85 to $3.04."

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

Shares of Valspar closed at $36.00 yesterday.

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