J.P. Morgan Reiterates Neutral Rating on Pall Corporation (PLL)

J.P. Morgan is out with a research report this morning, where it reiterates its Neutral rating on Pall Corporation PLL; it has a $46.00 price target on the stock, up from $40.00. The JPM analysts said that they are raising estimates on the name as the company's results generally reflected wider gross margins and operating margins. The analysts noted that Pall is a company that is meaningfully improving its financial returns and demonstrating steady demand growth in an uncertain global demand environment. As for valuation, the JPM analysts said, “PLL shares trade at an EV/EBITDA multiple of 10.7x for F2011, or at a premium to companies such as Praxair at 10.1x and Ecolab at 9.5x. We currently prefer Ecolab shares due to a discounted valuation and its leverage to a recovery in its core restaurant and lodging markets as we move further from the recession.”