Graco’s Corob acquisition ‘logical’, says DA Davidson

DA Davidson keeps a Neutral rating and $79 price target on Graco but notes that the company’s announced acquisition of Corob S.p.A. – a designer and manufacturer of high-performance volumetric and gravimetric equipment used the tinting of paint, coatings, inks and chemicals – represents a logical step that is inclusive of the complementary dispense and other process equipment serving its existing focus areas. The firm is “clearly supportive” of the further utilization of Graco’s cash-rich balance sheet, the analyst tells investors in a research note.