UPDATE: Citigroup Reiterates Neutral Rating, Lowers PT on The Valspar Corporation on Continued Macro Slowdown

In a report published Wednesday, Citigroup analyst P.J. Juvekar reiterated a Neutral rating on

, but lowered the price target from $73.00 to $71.00. In the report, Citigroup noted, “As we highlighted when we downgraded VAL to Neutral in June, challenges in parts of the coatings portfolio have lasted longer than management expected, reflecting tough macro conditions in key geographies (China, Australia) and end markets (machinery). The company has several levers to pull in 2014/15 which may help offset these headwinds, but we think the full realization of the benefits (Ace Hardware rollout, B&Q stores launch, normalization of Wattyl) may only come in 2015 and beyond. Exposure to US housing is one of our core investment strategies, but we prefer PPG and HUN as ways to play this theme. Remain Neutral.” The Valspar Corporation closed on Tuesday at $66.35.