Deutsche Bank Downgrades Valspar (VAL) to Hold

Deutsche Bank downgraded Valspar (NYSE: VAL) from Buy to Hold with a price target of $113.00 (from $92.00).

Analyst David Begleiter said, "We believe Sherwin-Williams agreement to acquire Valspar for $113/shr in cash, or $11.3B, and a 35% premium to Friday’s close, represents a full and fair purchase price for this US architectural and industrial coatings company. Based on our consensus ‘16E EBITDA of $745MM, Sherwin-Williams is paying $15.2x ‘16E EBITDA and 14.3x ‘17E EBITDA. Given the small universe of paint companies and Valspar’s long-term status as an acquisition target, we suspect all major coatings companies were involved in the acquisition process and that Sherwin was the highest bid. As such, we do not expect another bidder to emerge."

For an analyst ratings summary and ratings history on Valspar click here. For more ratings news on Valspar click here.

Shares of Valspar closed at $83.83 yesterday.

You May Also Be Interested In

• Deutsche Bank Downgrades L'Oreal SA (OR:FP) (LRLCY) to Sell
• SpaceX bond sale draws $89 billion in investor demand
• Public Storage (PSA) PT Raised to $338 at Truist Securities