Ahead Of The Bell: Analyst Rates Valspar 'Buy'

HARTFORD, Conn. (AP) — Lower costs for raw materials, aggressive cost reduction and productivity gains have combined to help paint and coatings manufacturer Valspar Corp. generate consistently strong earnings, an analyst said Wednesday.

Goldman Sachs analyst Robert Koort maintained a "Buy" rating on the Minneapolis-based company.

"Over the past few quarters, Valspar has delivered solid earnings results and robust incremental margin gains," he said in a note to investors.

He cited "dramatic raw material cost relief" and aggressive cost reductions and productivity gains.

In addition, Valspar should generate stronger earnings in the next few quarters as paint sales rise at big-box retailers, industrial and consumer activity increases in China and raw material costs continue to come down, Koort said.