Deutsche Bank Finds H.B.Fuller's 2-3% Growth Outlook Uninspiring

Deutsche Bank has published a research report on H.B. Fuller FUL and has raised the price target from $22 to $24. In the report, Deutsche Bank writes "Fuller shares rose 15% following a solid Q4 release with EPS beating by $0.09, gross margins holding firm despite rising raw materials and the midpoint of ‘11 EPS guidance ($1.80) $0.10 above consensus. With pricing and reformulation we expect Fuller to offset higher raw materials in 2011. However, we remain cautious on the shares as Fuller's forecast of 2-3% volume growth in '11 is in-line with the adhesives market. We believe Fuller needs to show above market growth for multiple expansion from its current 12.4x ‘11E EPS." Deutsche Bank maintains its Hold rating on H.B. Fuller, which closed yesterday at $23.00.