Airgas Stock Rises on Upgrade to "Buy"

Banc of America Securities analyst Kevin W. McCarthy upgraded Airgas shares to "Buy" from "Neutral," and upped his price target to $46 from $43. The stock dropped 6.2 percent between Feb. 26 and Wednesday's close at $39.45 on the New York Stock Exchange.

McCarthy expects the Philadelphia-area company's sales to gain as nonresidential construction improves. He also said price increases will help the company when they are implemented on April 1. Airgas's sales of safety products are also growing.

"We view Airgas as a high-quality, well-managed industrial gas distributor with above-average growth prospects and attractive defensive qualities relative to chemical industry peers," McCarthy said.

He expects the company's margins to improve as its sells more gases and fewer hard goods.

Airgas stock gained $1.84, or 1.9 percent, to $41.30 in midday trading on the New York Stock Exchange.