Market Overview

UPDATE: Deutsche Bank Raises PT on The Valspar Corporation on Fair Valuation

Share:
Related VAL
Valspar Completes Acquisition of Performance Coatings Businesses from Quest Specialty Chemicals
Valspar Q1 Earnings Beat Expectations

In a report published Wednesday, Deutsche Bank reiterated its Hold rating on The Valspar Corporation (NYSE: VAL), and raised its price target from $64.00 to $68.00.

Deutsche Bank noted, “FQ1 misses, '13 guidance lowered on weak int'l demand. Valuation fair at 17x. Valspar shares fell 7% following a disappointing FQ1 release as EPS missed by $0.10 (adjusted for a lower than expected tax rate), or 15% and the midpoint of '13 EPS guidance was lowered by $0.05 or 1%. While the drivers of the earnings miss and lowered guidance (weak China and Australia demand) are likely to persist thru at least FQ2, we believe these issues are macro in nature and do not reflect any structural or operating issues at Valspar. Rather, we continue to believe Valspar is executing at a high level as evidenced by nearly 10% volume growth in its Wood Coatings business. However, with valuation a fair 16.7x ‘13E EPS (vs 21.1 x for SHW and 17.6x for PPG), we maintain Hold.”

The Valspar Corporation closed on Tuesday at $61.94.

Latest Ratings for VAL

DateFirmActionFromTo
May 2015GabelliUpgradesHoldBuy
Feb 2015JP MorganMaintainsOverweight
Jan 2015Piper JaffrayInitiates Coverage onNeutral

View More Analyst Ratings for VAL
View the Latest Analyst Ratings

Posted-In: Deutsche BankAnalyst Color Price Target Analyst Ratings

 

Related Articles (VAL)

Around the Web, We're Loving...

Get Benzinga's Newsletters