HB Fuller Upgraded To Buy At Seaport Global, Shares Rise 1%

Core Viewpoint - Seaport Global Securities upgraded HB Fuller from Neutral to Buy with a price target of $80.00, resulting in a pre-market share increase of over 1% [1] Financial Performance - HB Fuller is expected to achieve strong year-on-year EBITDA growth in fiscal 2025 despite sluggish demand, driven by margin expansion from lower costs and mix improvements [2] - The EBITDA margin increased by 110 basis points year-over-year, even with declining volumes, indicating effective execution in pricing, procurement, portfolio restructuring, and manufacturing optimization [2] Segment Performance - The Engineering Adhesives segment led growth with a 14% EBITDA increase, while Building Adhesive Solutions outperformed underlying markets, benefiting from data center construction demand and growth in the Middle East [3] - The Hygiene, Health & Consumables segment showed weakness but was partially offset by demand from medical applications [3] Future Projections - Seaport projects an additional $25 million in price/cost tailwinds for FY26 and approximately $70 million in optimization benefits through FY30 [4] - The current valuation at 7.8x forward EBITDA is below the 3-year average of 9.0x, supporting the upgrade [4]