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Investing.com - DA Davidson lowered its price target on WD-40 (NASDAQ:WDFC) to $300 from $322 while maintaining a Buy rating following the company’s third-quarter fiscal 2025 results. According to InvestingPro data, WD-40’s stock currently trades at $224.90, with analyst targets ranging from $270 to $322.
The firm noted that WD-40 delivered "a solid 3Q25 (May 2025) quarter," with accelerating growth in its largest market and increased gross margins and profits compared to the previous quarter. InvestingPro data shows impressive gross profit margins of 54.13% and revenue growth of 8.71% over the last twelve months. Strong performance in the Americas and Asia-Pacific regions offset a decline in EIMEA (Europe, India, Middle East, and Africa), which the analyst attributed to timing issues with customer orders.
WD-40’s total revenue continued to increase, driven by gains in specialist products across all regions and growth in the core multi-use product (MUP) in the Americas. The company narrowed its top-line guidance but raised profit expectations due to improved currency trends. The company maintains a perfect Piotroski Score of 9, indicating strong financial health, with InvestingPro analysis showing 12+ additional key financial insights available to subscribers.
DA Davidson maintained its Buy rating despite the price target reduction, noting that with June "off to a strong start," the implied fourth-quarter sales guidance appears conservative. The new $300 price target is based on 50 times the firm’s fiscal 2026 earnings per share estimate.
The analyst’s report marks an official transition of coverage for WD-40 at DA Davidson, with the publication of new estimates for the company.
In other recent news, WD-40 Company announced its third-quarter earnings for 2025, reporting a diluted earnings per share (EPS) of $1.54, surpassing 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, the company achieved a record sales quarter with a 1% year-over-year increase in net sales, driven by growth in markets such as Latin America, India, China, and Iberia. The company’s gross margin improved to 56.2% from 53.1% last year, reflecting higher selling prices and lower input costs. WD-40 has provided guidance for full-year net sales growth of 6-9%, with expectations to reach between $600 million and $620 million. The company anticipates operating income ranging from $96 million to $101 million and diluted EPS between $5.30 and $5.60. Jefferies analysts noted the company’s strong EPS performance despite a revenue shortfall. Meanwhile, WD-40 continues to focus on expanding its maintenance products segment and enhancing supply chain efficiencies.
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