Analyst Downgrades H.B. Fuller

New York, NY, July 10, 2008--An analyst downgraded the shares of H.B. Fuller, a maker of sealants, paints and other specialty chemicals, citing a weak economy.

KeyBanc Capital Markets analyst Michael J. Sison downgraded the stock to "Hold" from "Buy" and said a weak U.S. economy and rising costs are likely to limit the stock's momentum in the near-term. Sison said he doesn't see a good catalyst over the next nine to 12 months.

"Despite solid execution internally, namely leveraging its balance sheet and aggressive cost savings initiatives, we continue to favor higher-quality names versus turnaround situations like H.B. Fuller that have heavy exposure to weak U.S. conditions and soaring petrochemical costs," Sison wrote in a client note.

Sison said H.B. Fuller's higher prices can help offset rising raw material costs, but said that demand in North America appears weaker than expected for the second half of 2008.