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Investing.com - DA Davidson has reiterated its Buy rating on WD-40 (NASDAQ:WDFC) with a price target of $300.00, according to a research note released Monday. The company, currently valued at $3.02 billion, maintains impressive gross profit margins of 54.9% and boasts a perfect Piotroski Score of 9, according to InvestingPro data.
The firm updated its model to account for a one-time income tax benefit of $11.9 million that WD-40 received in the second quarter of fiscal year 2025. This tax benefit boosted the company’s 2Q25 earnings per share by approximately $0.87.
DA Davidson clarified that WD-40’s adjusted EPS for 2Q25 was $1.33, rather than the $2.20 reported on a GAAP basis. The research firm noted that its new 4Q25 EPS estimate is $1.26, while its fiscal year 2025 estimate remains unchanged at $5.54.
WD-40’s fiscal year 2025 EPS guidance of $5.30-$5.60 accounts for the tax situation and implies fourth-quarter EPS in the range of $1.04-$1.34, according to the analyst note.
The firm explained that its previous estimate had incorrectly included the 2Q25 tax adjustment within WD-40’s FY25 EPS guidance, prompting this model update while maintaining the same overall rating and price target.
In other recent news, WD-40 Company reported its third-quarter earnings for 2025, revealing a diluted earnings per share (EPS) of $1.54, which surpassed analyst expectations of $1.42. However, the company’s revenue of $156.9 million fell short of the forecasted $160.6 million. Despite the revenue miss, WD-40’s gross margin improved to 56.2% from 53.1% last year, indicating a positive trend in profitability. The company also provided guidance for full-year net sales growth of 6-9%, expecting to reach between $600 million and $620 million.
In terms of analyst activity, DA Davidson lowered its price target for WD-40 to $300 from $322, while maintaining a Buy rating. This adjustment follows the company’s third-quarter results and reflects updated earnings per share estimates for fiscal 2026. The firm noted that WD-40 delivered a solid quarter with growth in the Americas and Asia-Pacific regions, offsetting declines in Europe, India, the Middle East, and Africa.
Additionally, WD-40’s strategic focus on its Multi-Use and Specialist products contributed to its financial performance, with strong sales in key markets such as Latin America, India, China, and Iberia. The company also highlighted its ongoing efforts to enhance supply chain efficiencies and expand its maintenance products segment. These developments reflect WD-40’s resilience and adaptability in a complex market environment.
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