Valspar +3.7% as Goldman upgrades to Conviction Buy from Neutral

|About: The Valspar Corporation (VAL)|By:, SA News Editor

Valspar (VAL +3.7%) is upgraded to Conviction Buy from Neutral with a $97 price target, up from $83, at Goldman Sachs, which cites quality growth and a discount valuation.

Goldman says the paint industry has been re-rating on the appeal of solid underlying growth and superior cash flow, but VAL has not kept up with its primary peers and now carries a substantial 4x-6x P/E multiple discount.

With VAL building traction through new business initiatives, cyclical lift in its industrial businesses, and recovery in its global paint markets, the firm expects improved investor awareness and a shrinking valuation gap.