H.B. Fuller upgraded to Buy from Neutral at Citi

Citi analyst Eric Petrie upgraded H.B. Fuller to Buy from Neutral with a price target of $85, up from $72. The analyst cites the stock’s valuation gap relative to peers and the company’s improving margins for the upgrade. H.B. Fuller’s valuation has come off and now trades at a discount to comparables, the analyst tells investors in a research note. The company’s margins will be helped by price-cost and innovation into "megatrends," including packaging sustainability, autos and clean energy, Citi contends. Plus, the China re-opening post New Year and improving growth prospects into the second half of 2023 is a positive for the highest margin business, Engineering Adhesives, writes Citi.