JPMorgan has revised its stance on H.B. Fuller (NYSE: FUL), moving the stock's rating from Neutral to Overweight on Friday.
Analyst Jeffrey Zekauskas stated in a research note to clients that the company has managed to grow its adjusted EBITDA despite flat or declining sales volumes, supported by product price increases and favorable foreign exchange effects.
The analyst noted that the adhesive and sealant manufacturer is streamlining its production footprint to reduce costs. He added that, combined with lower international oil prices and the resumption of normal shipping traffic through the Strait of Hormuz, the company's raw material cost pressures are likely to ease by 2027.
Zekauskas also raised the price target for the stock from $58 to $67, implying an approximate 8% potential upside from Thursday's closing price.
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