Deutsche Bank upgraded HB Fuller (NYSE: FUL) from Hold to Buy with a price target of $54.00 (from $53.00) saying Q3 headwinds are transitory.

Analyst David Begleiter said, "Fuller’s shares fell 6% following its FQ2 release as the company lowered its ’14 EPS guidance by 8% (midpoint) due primarily to a delay in its European business integration project. As a result margin expansion expected to occur in Q3 is being delayed. While disappointing, this issue is transitory as the project is on track to be completed by the end of Q3. As such, we continue to believe Fuller will achieve its '15 EBITDA margin target of 15% (vs 12.4% in ’13). Coupled with accelerating volume growth in Americas Adhesives our ‘15E EPS of $3.60, up 24%, is unchanged and valuation is an attractive 13.2x ‘15E."

The firm lowered FY 2014 EPS from $3.10 to $2.90.

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Shares of HB Fuller closed at $47.44 yesterday.