WD-40 Co "buy"

09/26/03 - Ferris Baker Watts

NEW YORK, September 26 (New Ratings) – Analyst Liam D Burke of Ferris, Baker Watts issues a "buy" rating on WD-40 Co (WDFC). The target price has been raised to $37.

In a research note dated September 25 and published this morning, the analysts mention that the company announced 4Q03 and full year 2003 EPS significantly ahead of the results achieved in the previous year. The analyst attributes the upswing primarily to the company’s increased penetration of the overseas market with its Spot Shot lubricant product. Despite the company’s guidance of sales growth of over 9%, the analyst has reduced the FY04 EPS estimates to reflect the higher-than-expected advertising and promotional expense allocation. The analyst says that the company’s stock is at present attractively priced relative to its peers.