Keybanc Downgrades Brady to Hold

According to KeyBanc, Brady Corporation BRC is downgraded to Hold. KeyBanc said that it is downgrading its rating on shares of BRC from BUY to HOLD as a result of our concerns around the potential for persistent growth headwinds in the Asia-Pacific region for the OEM business and our reassessment of the timing of the Company's cost savings program potential in the context of a softening in its main end market. “At current levels, BRC shares sell at 7.7x and 7.1x EV/EBITDA based on our FY11 and FY12 estimates, respectively, near the low end of its recent historical range of 7.5-9.9x. On a P/E basis, the stock sells at 14.7x and 13.3x our FY11 and FY12 estimates, respectively, near the low end of the Company's average forward 12-month range of 14.4-19.4x.” Brady Corporation closed on Friday at $31.99.