Mueller Water Products Climbs After Upgrade

NEW YORK (AP) — Shares of Mueller Water Products Inc., which makes flow control products, rose Tuesday after an analyst upgraded the shares on a recent decline in price, prospects for favorable changes to the company's loan agreement and the likelihood that product demand is set to climb.

Since May 5, when Mueller reported earnings, the stock has fallen 22 percent. In the year to date, shares have lost more than half their value. In a client note Tuesday, Oppenheimer analyst Christopher Glynn upgraded the stock to "Perform" from "Underperform," saying the shares' current valuation fairly reflects the "current demand environment."

Greene also said that he expects the Atlanta-based company to successfully negotiate favorable amendments to its debt covenants.

Finally, demand for Mueller's products should increase soon, he said.

"With about two-thirds of total sales tied to municipal infrastructure and residential construction, we believe prospects for demand improvement in fiscal year 2010 are positive."

In midday trading, the stock rose 30 cents, or 7.7 percent, to $4.20.