KeyBanc Downgrades Airgas (ARG) to Sector Weight

KeyBanc downgraded Airgas (NYSE: ARG) from Overweight to Sector Weight and removed its price target. Analyst Michael J. Sison sees limited upside given recent strength in the stock.

"We are downgrading ARG to Sector Weight from Overweight given significant stock momentum in the shares in the last two days without new positive fundamental news pinning the stock at a FY16E EV/E of ~10.5x. Our prior price target was $111 based on a 2016E EV/E of 11.0x vs. its seven-year historical average EV/EBITDA range of 8.5-11.0x. While it does appear that takeover speculation is supporting the momentum and could provide a higher multiple if one unfolds, we believe the risk/reward profile given the strength is balanced," said Sison.

For an analyst ratings summary and ratings history on Airgas click here. For more ratings news on Airgas click here.

Shares of Airgas closed at $106.18 yesterday.

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