NEW YORK (TheStreet) -- Valspar Corp. (VAL - Get Report) stock had its ratings slashed at KeyBanc Capital Markets earlier this morning to "sector weight" from "overweight," analysts said this was based on a valuation call.
The firm does not see much downside or upside at current levels and feels that the risk/reward profile is in balance.
While analysts see sales in its paints segment improving in the second half of 2016, its sales at Lowe's Cos. (LOW) may face growing competition.
Other challenges include sluggish industrial international markets, including China, which represents nearly 15% of Valspar's total sales.
Shares closed Monday's trading session down by 0.77% to $79.89.
Based in Minneapolis, Valspar develops, manufactures, and distributes a range of coatings, paints, and related products worldwide.
Separately, TheStreet Ratings currently has a "Buy" rating on the stock with a letter grade of B.
The company's strengths can be seen in multiple areas, such as its expanding profit margins and notable return on equity. We feel its strengths outweigh the fact that the company has had sub par growth in net income.
Recently, TheStreet Ratings objectively rated this stock according to its "risk-adjusted" total return prospect over a 12-month investment horizon. Not based on the news in any given day, the rating may differ from Jim Cramer's view or that of this articles' author.
You can view the full analysis from the report here: VALVAL data by YCharts