UPDATE: Citigroup Color On VAL

Citigroup, which has raised its PT on shares of The Valspar Corp. VAL, is providing some color on the company. “VAL's performance in 1Q was generally in-line with expectations as 10% organic revenue growth offset some of the margin compression resulting from mid-teens Y/Y raw material cost inflation,” Citigroup writes. “VAL continues to benefit from strength in industrial end markets, and sales at the typically moderate growth packaging business continue to advance at a double-digit Y/Y pace. However, we remain on the sidelines as we anticipate rising raw material costs will continue to pressure margins.” The Valspar Corp. closed Monday at $38.29.