Morgan Stanley Upgrades Rating, Moves PT To $112 On PX

Morgan Stanley is upgrading its rating from Underweight to Equal-Weight and is raising its price target from $103 to $112 on Praxair PX in its preview of the company's upcoming Investor Day. According to Morgan Stanley, “We expect Praxair to discuss additional hydrogen opportunities at its June 22 investor day. Hydrogen is used to upgrade heavy oil into gasoline that meets fuel regulations. Last week, Praxair announced it had signed a new contract to supply two large US refineries. We expect this to increase 2013 revenue by ~$225 million. The greatest growth in hydrogen likely comes from Brazil and we believe Praxair may have won substantial hydrogen contracts with Petrobras coming on-stream in 2015 - 20.” PX closed at $101.65 on Friday.