KeyBanc Upgrades Donaldson (DCI) and CLARCOR (CLC) to Hold

March 5, 2009 7:51 AM EST

KeyBanc upgrades Donaldson (NYSE: DCI) and CLARCOR (NYSE: CLC) from Underweight to Hold based on valuation.

KeyBanc analyst says, "As both Donaldson and CLARCOR have approached our $23 and $25 downside price targets, respectively, we are upgrading shares to HOLD from UNDERWEIGHT based on valuation. We remain cautious on Donaldson and CLARCOR as we believe their sensitivity to the economic cycle has been generally underestimated by investors; however, we believe the risk/reward profile is appropriately balanced at current share price levels...Shares reflect more appropriate balance of Risk/Reward at current levels; lowering our CLARCOR FY09 estimate to $1.78 (from $1.85), including a 1Q09 estimate of $0.31 on further off-road, engine OEM weakness; Donaldson read-through suggests CLARCOR's U.S. centric, aftermarket-oriented business mix may prove more resilient near term."

Donaldson Company, Inc. (Donaldson) is a worldwide manufacturer of filtration systems and replacement parts.

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