WD-40 stock maintains Buy rating at DA Davidson on strong margins

Investing.com - DA Davidson has reiterated its Buy rating and $300 price target on WD-40 (NASDAQ:WDFC) following the company’s fourth-quarter fiscal 2025 results. According to InvestingPro data, WD-40 maintains a perfect Piotroski Score of 9, indicating strong financial health, while trading near its Fair Value.

The maintenance product manufacturer reported approximately 5% sales growth in the quarter ended August 2025, with improved gross margins and accelerating profits compared to the previous quarter. This performance aligns with the company’s trailing twelve-month revenue growth of 6.52% and impressive gross profit margin of 54.9%.

Regional performance showed strength in Europe, India, Middle East and Africa (EIMEA) and Asia-Pacific markets, which offset declines in the Americas that were attributed to order timing and retailer inventory constraints.

A significant achievement highlighted by DA Davidson was WD-40’s gross margins exceeding 55% of sales for fiscal year 2025, reaching this milestone a full year ahead of the company’s plan.

The company’s fiscal 2026 guidance aligns with consensus estimates across all financial metrics and conforms with WD-40’s long-term guidance on a pro-forma basis.

In other recent news, WD-40 Company reported its fourth-quarter earnings for fiscal year 2025, exceeding Wall Street expectations. The company achieved an earnings per share (EPS) of $1.56, surpassing the forecasted $1.26. Additionally, WD-40’s revenue outperformed predictions, reaching $163.5 million compared to the anticipated $153.9 million. These results represent significant developments for the company and have captured the attention of investors. The earnings report highlights WD-40’s ability to perform well in the current market environment. Analysts and investors are closely watching these results as they reflect the company’s financial health and operational efficiency. This recent performance has been a key topic of discussion among financial analysts and investment firms.

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