Hudson Securities Raises Graco PT To $46, Maintains Buy (GGG)

Hudson Securities raised its Graco GGG price target to $46 from $3 and maintained Graco's Buy rating in a research report published today. In the report, Hudson Securities states, "The new paint sprayer product continues to drive top-line growth although the strength of this product has caused some short-term margin pressure in the form of higher sales incentive/bonus costs and product launch expenses which have eaten into Contractor's margin. Management sounds like they have more firepower on the new product front and while near-30% top line on an annual basis is not sustainable, the company should continue to see double digit top-line growth in 2011. As launch costs subside, margins at Contractor should see big improvement." Shares of Graco were at $41.00 at the time of posting, down 0.39% from Tuesday's market close.