Graco Shares Rise on Upgrade
biz.yahoo.com
Wednesday May 31, 1:46 pm ET
Shares of Graco Rise After Analyst Upgrades Company, Citing Expectations of Business Increases
NEW YORK (AP) -- Shares of Graco Inc., which manufactures fluid management devices, rose Wednesday after an analyst upgraded the company, saying that an increase in commercial and remolding activity should offset an expected decline in residential construction.
In heavy afternoon trading, Graco shares were up $2.37, or 5.4 percent, to $46.18 on the New York Stock Exchange, after topping out at $47.26 earlier in the day. Over the past year, Graco shares have ranged between $31 and $50.
Ned Armstrong of Friedman, Billings, Ramsey & Co. upgraded the company to "Outperform" from "Market Perform," but maintained his price target of $50 and 2006 earnings estimates.
"While we acknowledge that a decline in the residential housing sector poses a risk, we believe that commercial and remolding activity can help offset weakness in residential construction," Armstrong wrote in a note to investors.
Armstrong added that Graco is one of the leaders its peer group in organic sales growth, margins, returns on capital, and strong cash flow.
He added that conversations with resellers and users of Graco's products show that the company makes high-quality products, provides excellent service and appears to have a pro shareholder attitude. |
