Global adhesives supplier H.B. Fuller Company (FUL) has entered into a distribution agreement with India-based Jubilant Agri and Consumer Products Limited (JACPL) to meet the adhesive applications demand in the country’s B2B woodworking segment. H.B. Fuller offers specialty chemical products like sealants and perfecting adhesives.
As per the terms of the agreement, JACPL, a subsidiary of Jubilant Industries Limited, will serve as a national channel partner of H.B. Fuller in India.
The deal will help H.B. Fuller expand the reach of its adhesive solutions to a range of technologies like polyurethanes and hot melt moisture cures, among others. (See H.B. Fuller stock chart on TipRanks)
Managing Director of H.B. Fuller for India, Middle East, and Africa, Harsh Gupta, said, “We believe this new partnership will provide a great opportunity to leverage the strengths of both companies to be better positioned at solving complex bonding issues with less impact on the environment. Our next generation of adhesives can contribute to more efficient manufacturing processes across a diverse range of woodworking applications, including furniture, cabinets and countertops, windows, doors and lamination.”
Deutsche Bank analyst David Begleiter recently reiterated a Hold rating on the stock but raised the price target to $67 from $65 (5% upside potential).
Following the fiscal second-quarter results, Begleite said in a research note to investors that while the company’s sales growth guidance surpassed estimates, and EBITDA was modestly above expectations, the implied EBITDA guidance for the fiscal third quarter was 8% below consensus. “Further, the implied EBITDA guidance for the fiscal fourth quarter was wider than usual,” the analyst added.
Overall, the stock has a Moderate Buy consensus rating based on 2 Buys and 2 Holds. The average H.B. Fuller price target of $73.25 implies 14.8% upside potential from current levels. The company’s shares have gained 43.6% over the past year.
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