Deutsche Bank Maintains Hold On Valspar (VAL)

Deutsche Bank is maintaining its Hold rating and $32 price target on The Valspar Corporation VAL. In a note sent to clients, Deutsche Bank writes, "Valspar shares rose nearly 6% after its Q4 release, in our view, due to a bullish 2011 outlook with the mid-point of EPS guidance ($2.55) well above consensus ($2.45). Driven by new business initiatives, operational discipline, and modest accretion from the Wattyl acquisition, we expect Valspar to deliver 15% earnings growth in 2011. However, with escalating titanium dioxide (TiO2) costs unlikely to be fully recaptured until y/e, we expect Valspar shares to be range-bound near- term. With valuation a fair 11.3x ‘11E EPS, we maintain our Hold rating." Shares of VAL lost 66 cents yesterday to close at $33.04, a loss of nearly 2%.