UPDATE: Deutsche Bank Raises PT to $35 on HB Fuller
Deutsche Bank raises its price target $6 to $35 on Hold-rated HB Fuller (NYSE: FUL) to reflect accretive but fair valuation of the Forbo Acquisition.
Deutsche Bank says, "Fuller shares rose 4% following a strong Q1 release as EPS beat by $0.07, '12 guidance for the core business was reaffirmed at $2.05-$2.15 and the transformative $394MM Forbo acquisition is tracking ahead of expectations. Fuller is benefitting from a more benign raw material environment in '12 as raws declined ~1.5% in Q1 vs Q4 (up ~10% YoY) and are expected to be up a modest 4% YoY in '12 (vs +20% in FY11) . Fuller is also guiding the Forbo acquisition to be $0.05-$0.15 accretive in '12 as synergy capture is occurring earlier than previously anticipated. However, with volume growth in core N American markets less than robust and valuation a fair 14.6x '12E EPS."
FUL closed at $32.92 on Thursday.
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