Bank Of America Upgrades ARG To Buy

Bank of America has upgraded its rating on Airgas

from Neutral to Buy due to what they see as a positive time for the sector. Says Bank of America, in its report, “In connection with our reassessment of risk within the chemicals sector, we upgrade shares of Airgas, the leader in US packaged gases. Our rating moves to Buy from Neutral. Relative to other stocks in our coverage, we see more limited downside risk to earnings given defensive characteristics such as rental income on cylinders, double-digit secular earnings growth prospects, and the late-cycle nature of US packaged gases. In its worst earnings year in the last decade, Airgas suffered only a 14% decline in EPS in its F2010 ended March.” Bank of America maintains its $75 price target on the stock. ARG closed yesterday at $61.48.