Graco Rises After Analyst Upgrades Stock

His forecast for 2009 earnings per share is 85 cents. Analysts surveyed by Thomson Reuters expect, on average, $1.03.

In afternoon trading, shares rose $2.28, or 11.3 percent, to $22.45.

Other analysts were less sanguine, and somewhat surprised at the share price gains.

BMO Capital Markets analyst Charles D. Brady maintained his "Market Perform" rating, noting Graco's report earlier this week that first-quarter profit fell 92 percent as well as the recent plunge in the company's order rate.

"Orders continue to look weak and management themselves says there is no visibility," he said Friday afternoon in an e-mail. "Key end-markets are still weak."

On the other hand, "Graco is a good quality company that will be earlier in the cycle pickup than some other industrial companies," he said, referring to a 2010 pickup.

In a client note earlier in the day, Brady noted Graco did not supply first-quarter order rate information except to say that the run rate has "improved slightly" in recent weeks.