Friedman Billings Ups Graco to Outperform

Analyst Ned Armstrong notes the stock's recent sell-off

From Standard & Poor's Equity Research

Friedman Billings upgraded Graco (GGG) to outperform from market perform, noting the stock's recent sell-off.

Analyst Ned Armstrong now sees the company's valuation as interesting. He maintains a positive view of the company's fundamental prospects. While he acknowledges that a decline in the residential housing area poses risk, he thinks commercial and remodeling activity can help offset weakness in residential construction. He sees $2.30 2006 earnings per share (EPS) on $831 million revenue. He has a $50 stock price target.

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