KeyBanc Upgrades HB Fuller (FUL) to Buy; Earnings Growth Is Sticky

KeyBanc upgraded HB Fuller (NYSE: FUL) from Hold to Buy with a price target of $32.00.

Keybanc analyst says, "Following recent due diligence, our more positive view is driven by our belief that FUL: 1) will post strong EBITDA growth (+16%) in FY12E and solid EPS growth (+11%) with the lion's share coming from levers under its control on the pricing and cost savings front; 2) margin improvement should come despite volumes pressured from underlying demand weakness in fiscal 1H12E; and 3) FUL has attractive long-term cyclical upside potential particularly as cost savings from the Forbo acquisition and ongoing restructuring initiatives provide increased operating leverage heading into FY13E and beyond."

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 $24.87 yesterday.

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