H.B. Fuller (FUL.N): Model Update and Thoughts on AMS Takeover Post Callback

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H.B. Fuller (FUL.N): Model Update and Thoughts on AMS Takeover Post Callback

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29 Jun 2026 06:44:57 ET │ 15 pages

H.B. Fuller (FUL.N)

Model Update and Thoughts on AMS Takeover Post Callback

CITI'S TAKE

Buy FUL shares traded ~2% lower in the two days post the AMS

announcement with most investor concerns anchored on full multiple Price (26 Jun 26 16:00) US$63.25

(~13x on IFRS basis/~15x on GAAP basis) and higher leverage. We believe Target price US$75.00↑

investors came away with more comfort on AMS's non-adhesive portfolio, from US$70.00

with overlap both on the commercial and chemistry side. Following our Expected share price return 18.6%

management callback, we believe that the market reaction was overdone Expected dividend yield 1.5%

relative to the quality and visibility of synergies and potential of earnings

Expected total return 20.1% acceleration in a high-growth, high-margin growth market. That being

Market Cap US$3,402M said, integration risk is tangible given FUL is concurrently pursuing Project

Quantum Leap alongside the acquisition and anticipated PF net leverage

of ~4x provides little room for error in an uncertain macro. On

fundamentals, while F2Q26 volumes declined only modestly, Patrick CunninghamAC

management continues to guide LSD-MSD volume declines in F2H26, +1-212-816-6684

with particular weakness expected in HHC, and to a lesser extent, EA, patrick.cunningham@citi.com

forecasting inflationary consumer challenges.

Rachel Lee

+1-212-816-4559

Incorporating AMS Into Estimates — We update our model to reflect anticipated rachel.lee@citi.com

close of AMS at year-end and a full-year of contribution in FY27. Overall, our deal

model bakes in 2027 & 2028 FactSet GAAP consensus for AMS while assuming in- Alexander Yi