ARG A "Key Industrial Holding," Piper Jaffray Reports

Piper Jaffray continues to view Airgas Inc. ARG as a “key industrial holding following our recent NDR with CEO Peter McCausland this week.”

“We see earnings leverage emerging from the company's 875+ locations as domestic industrial and construction end markets continue to recover, and the company sharpens their focus on internal initiatives such as strategic accounts/products and SAP,” Piper Jaffray writes.

“We believe shares remain undervalued at ~14x our CY12 EPS estimate of $4.35 as the overhang from the failed APD offer interfered with multiple expansion during the past year. Our PT remains $76 with the next catalyst being the 4Q earnings release in May.”

Airgas Inc. closed Tuesday at $62.26.