UPDATE: Deutsche Bank Upgrades HB Fuller Company to Buy; Targets Attainable with New Acquisition

Deutsche Bank upgraded HB Fuller Company FUL from Hold to Buy and raised the price target from $42.00 to $47.00. Deutsche Bank noted, "When Fuller unveiled its 5-yr financial targets in early ‘11 we were skeptical. Organic sales growth of 5-8% seemed unreachable given volumes had declined in 7 of the prior 10 years. Meanwhile, the 15% EBITDA margin target appeared aspirational vis-à-vis the 10.9% EBITDA margin in ‘10. However, 2 years into the 5-yr plan, not only is Fuller delivering on its commitments (6% organic growth in '12, EBITDA margin +80 bps to 11.7% in '12), but with the transformative $405MM Forbo acquisition, ‘15 targets have been raised to an attainable, in our view, $4/shr in '15 (22% CAGR '13-'15)." HB Fuller Company closed at $39.39 on Friday.