J.P. Morgan Lowers Price On H.B. Fuller (FUL)

J.P.Morgan Chase & Co. is lowering estimates on H.B. Fuller

, and lowering its price target to $23 from $26 after the company reported earnings below expectations. It is maintaining its Overweight rating. In the research note, J.P. Morgan writes, "Consolidated sales grew 7.4% (volumes +6.4%, prices +2.5%), gross profit decreased (5.1%), and operating income declined (31.6%). Raw material costs were more than 15% higher yoy (vs. ~8% yoy increase in Q2:F10), resulting in gross margin contraction to 28.4% vs. 29.6% in the prior quarter and 32.2% in the prior year period. Overhead expenses continued to grow faster than sales, reflecting investments for future growth, which should provide leverage in the out years. We lowered our F2011 EPS forecast from $1.85 to $1.75 and reduced our F2012 EPS projection from $2.10 to $2.00. Our Q4:F10 EPS forecast remains unchanged at $0.45." Shares of FUL closed at $21.00 yesterday. You Can't Afford Miss To Out On These Money Making Trading

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