Citing a sharp drop in the price of WD-40 shares, a JPMorgan analyst on Tuesday upgraded the consumer products maker's stock to "Neutral" from "Underweight."
WD-40 Co. shares are down 20.6 percent over the last month. Analyst Jeffrey Zekauskas raised his rating, saying higher costs for raw materials like petroleum will pare gross margins, but WD-40 is responding by cutting costs, raising prices and selling new products.
New products include the WD-40 Smart Straw, an attachment on cans that can be flipped up to aim a spray more precisely. The analyst said WD-40 beat expectations in the fiscal third quarter in part because it cut advertising costs.
Zekauskas added that growing sales in Europe and China will help offset weakening customer traffic and competition for household products.
Terms & Conditions
RSS Headlines
Fool UK