WD-40 Shares Climb After Analyst Upgrades Stock

NEW YORK (AP) — Shares of WD-40 Co. climbed Friday after an analyst upgraded the maker of the namesake lubricant and other consumer products, saying it is poised to resume revenue growth after a year of declines.

Shares rose $1.06, or 3.8 percent, to $29 in afternoon trading.

JPMorgan analyst Jeffrey J. Zekauskas raised his rating to "Overweight" from "Neutral" and lifted his price target to $32 from $25.

Zekauskas said the company is likely to see revenue growth again after a 10 percent decline over the last year. He also said the company was looking to turn its fortunes by bringing its WD-40 product to international markets through a new product line.

The company's revenue has suffered recently due to negative currency effects and higher jet fuel and tin plate prices, he said. But these problems are diminishing.

"We believe all three of these cost factors are now moving in a more favorable direction and demand for WD-40 products is likely to be higher in (fiscal 2010) from a rebound in demand in the U.S. and continued growth in Europe," Zekauskas wrote in a note to clients.

Shares of WD-40 have traded between $21.81 and $37.62 over the last 52 weeks.