KeyBanc Upgrades Valspar (VAL) to Buy
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Price: $89.90 +1.03%
Rating Summary:
0 Buy, 11 Hold, 8 Sell
Rating Trend:
Down
Today's Overall Ratings:
Up: 9 | Down: 6 | New: 26
Rating Summary:
0 Buy, 11 Hold, 8 Sell
Rating Trend:
Down
Today's Overall Ratings:
Up: 9 | Down: 6 | New: 26
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KeyBanc upgraded Valspar (NYSE: VAL) from Hold to Buy with a price target of $75.00.
The firm comments, "A consolidating industry and new market wins coupled with improving fundamentals in the U.S. architectural markets should help to maintain the momentum in VAL's earnings. This earnings growth likely keeps shares moving consistently higher over time and as such we are upgrading The Valspar Corporation (VAL-NYSE) to a BUY and establishing a $75 price target."
They continued, "We sense the recent acquisition activity in North America will lead to an even more rational industry and possibly offer VAL further opportunities with key customers. Additionally, the recent customer win in the United Kingdom with B&Q could add $100 million to sales within the next few years, with the possibility of ultimately penetrating Kingfisher's 1,000 plus stores throughout Europe. Its Wattyl business should show meaningful improvement in the next year or two through both profitability and sales growth as more Masters stores are opened. Next, VAL has been relatively quiet on the acquisition front the last two years, and we would expect that to change in 2013. Lastly, the success of VAL's new products in its coatings business is adding to sales and profitability, and we would expect to see this momentum continue. Putting it all together, VAL's earnings potential over the next few years may be well above current expectations. Even with the performance of shares the last year, we sense further upside still exists."
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 $61.16 yesterday.
The firm comments, "A consolidating industry and new market wins coupled with improving fundamentals in the U.S. architectural markets should help to maintain the momentum in VAL's earnings. This earnings growth likely keeps shares moving consistently higher over time and as such we are upgrading The Valspar Corporation (VAL-NYSE) to a BUY and establishing a $75 price target."
They continued, "We sense the recent acquisition activity in North America will lead to an even more rational industry and possibly offer VAL further opportunities with key customers. Additionally, the recent customer win in the United Kingdom with B&Q could add $100 million to sales within the next few years, with the possibility of ultimately penetrating Kingfisher's 1,000 plus stores throughout Europe. Its Wattyl business should show meaningful improvement in the next year or two through both profitability and sales growth as more Masters stores are opened. Next, VAL has been relatively quiet on the acquisition front the last two years, and we would expect that to change in 2013. Lastly, the success of VAL's new products in its coatings business is adding to sales and profitability, and we would expect to see this momentum continue. Putting it all together, VAL's earnings potential over the next few years may be well above current expectations. Even with the performance of shares the last year, we sense further upside still exists."
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 $61.16 yesterday.
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