JPMorgan Upgrades HB Fuller (FUL) to Neutral

JPMorgan analyst Jeffrey J. Zekauskas upgraded HB Fuller (NYSE: FUL) from Underweight to Neutral with a price target of $58.00.

The analyst comments: “We upgrade Fuller to Neutral from Underweight. The near-term tactical and strategic direction of the company is now less clear. Near-term share price performance may be determined by whether Fuller does or does not proceed with the AMS transaction or whether it initiates a full review of strategic alternatives. We expect the company to throw off a modest 4% free cash flow yield on a balance sheet that is a little more than 3x levered. Fuller trades at 8x adjusted 2026E EBITDA, comparable to Celanese and Eastman, which are likely to have greater cyclical earnings benefits in the current environment and higher levels of free cash flow. We think it is difficult for smaller capitalization and financially leveraged companies to outperform with the market in an environment of increased economic risk. Our price target for Fuller remains $58 reflecting about an 8x multiple of adjusted EBITDA.”

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

Shares of HB Fuller closed at $60.56 yesterday.

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