DA Davidson Lowers WD-40 Price Target

Specialty chemicals company faces margin pressure despite revenue beat

Apr. 10, 2026 at 6:37pm

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Investment firm DA Davidson lowered its price target for WD-40 Company (NASDAQ:WDFC) from $300 to $270, citing concerns over the company's profitability despite a revenue beat in the latest quarter. Analysts noted that while WD-40's Q2 sales grew 10.7% year-over-year, earnings and net income declined significantly due to higher costs, putting pressure on margins.

Why it matters

WD-40's flagship multi-use product is a household and industrial staple, but the company faces challenges in maintaining its profit margins amid inflationary pressures. Analysts are closely watching whether the company can navigate these headwinds and deliver on its full-year guidance.

The details

In a research note, DA Davidson analysts lowered their price target on WD-40 from $300 to $270 while maintaining a "buy" rating. The firm cited mixed profitability in the company's latest quarterly results, with GAAP EPS of $1.50 topping Street estimates but declining significantly year-over-year due to higher costs and other factors, even as gross profit improved. Management provided FY2026 guidance that came in slightly below consensus expectations, raising concerns about the company's ability to fully recover its profit margins.

  • WD-40 reported its Q2 2026 financial results on April 9, 2026.

The players

WD-40 Company

A specialty chemicals company best known for its flagship WD-40 Multi-Use Product, a water-displacing spray used for lubrication, rust prevention and cleaning. The company distributes its products in over 176 countries.

DA Davidson

An investment firm that covers WD-40 and recently lowered its price target on the stock.

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What’s next

Analysts will be closely monitoring WD-40's ability to navigate inflationary pressures and maintain profitability in the coming quarters. The company's full-year guidance and any updates on its margin recovery efforts will be key factors in determining whether further downgrades or price target adjustments are warranted.

The takeaway

WD-40's iconic brand and global distribution have helped drive revenue growth, but the company is facing challenges in protecting its profit margins. Investors will be watching to see if WD-40 can successfully manage rising costs and deliver on its financial targets to justify its current valuation.