UPDATE: J.P. Morgan Reiterates Neutral Rating, Raises PT on The Valspar Corporation

In a report published Wednesday, J.P. Morgan & Co. reiterated its Neutral rating on The Valspar Corporation VAL, and raised its price target from $52.00 to $59.00. J.P. Morgan noted, “Valspar is a well-managed coatings company with good returns, but we do not view it as an above-average risk/reward vehicle for year-ahead share-price performance. Valspar's share price appreciated 54% since the beginning of 2012 versus a 10% appreciation in the S&P 500 Index. The positive change in Valspar's valuation is probably the result of successful pricing initiatives offsetting raw material cost inflation, and cost savings from restructuring activities. Valspar trades at 9.6x EV/EBITDA for F2013 with a 4.8% estimated free cash flow yield for F2013, which compares to a Specialty Chemical peer group average of 6.9-13.1x EV/EBITDA.” The Valspar Corporation closed on Tuesday at $60.08.