NEW YORK (TheStreet) -- Fluid materials company Graco (GGG) was upgraded by Goldman Sachs Wednesday to a buy from a sell because Goldman expects the drivers for Graco's earnings strength in 2011 will continue in 2012.
Graco's organic revenue growth is slated to outpace its peers this year because of its new products and markets as well as its presence in Asia, Goldman analysts wrote in a note.
"Our Sell rating had been based on exposure to weak US housing markets (20-25% of revenues) constraining valuation, which has clearly proven incorrect," Goldman analysts wrote.
Goldman raised its price target on Graco to $49 from $41.Graco is one of several companies going ex-dividend Thursday, meaning an investor must purchase the stock Wednesday to qualify for the next dividend payment. Graco gets a buy rating from TheStreet Ratings as do Chesapeake Energy (CHK), EOG Resources (EOG) and Lincare Holdings (LNCR).
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