H.B. Fuller We Upgrade from Underweight to Neutral

Research evidence excerpt

H.B. Fuller We Upgrade from Underweight to Neutral

Jeffrey J. Zekauskas AC North America Equity Research

(1-212) 622-6644 27 May 2026 J P M O R G A N

jeffrey.zekauskas@jpmorgan.com

Price Performance Summary Investment Thesis and Valuation

Investment Thesis

We upgrade H.B. Fuller from Underweight to Neutral. H.B.

Fuller manufactures and sells adhesives and sealants to the

consumable, medical, construction and engineering markets.

Fuller is raising product prices to offset higher raw materials

costs, and downsizing its manufacturing footprint to achieve

long-term cost reductions. Fuller’s volume growth is however

still held back by weak consumer activity, muted construction

demand and solar destocking in Asia. The combination of a

negative volume outlook and modest free cash flow generation

YTD 1m 3m 12m will likely limit trading multiple expansion for Fuller in a weak

Abs -2.8% -8.3% -12.4% 5.4% global industrial and packaging environment. Fuller announced

Rel -18.4% -11.3% -20.1% -34.9%

its intention to bid for Advanced Medical Solutions Group, a

Company Data company that sells surgical and wound-care products including

Shares O/S (mn) 55 adhesives into the medical fields. Near-term share price

52-week range ($) 68.63-48.71 performance may be determined by whether Fuller does or does

Market cap ($ mn) 3,354.54

Exchange rate 1.00 not proceed with the transaction or whether it initiates a full

Free float (%) 99.3% review of strategic alternatives. Our Dec-2026 price target is

3M ADV (mn) 0.60 unchanged at $58. Fuller currently trades at 8.2x EV/EBITDA

3M ADV ($ mn) 35.5

Volatility (90 Day) 41 for F2026E. Our price target reflects a multiple of 8.0x on

Index RUSSELL 2000 Fuller’s 2026E EV/EBITDA. We expect its free cash flow yield