2/16/2010-Morgan Stanley initiated coverage of Praxair (NYSE:PX) with an Equal-weight rating and an $86 price target.
Analysts Paul Mann, Charles Dan, and Sophia Xia said, "We are initiating coverage of Praxair with an EW rating and an $86 price target. We have a favorable view of the industrial gas segment: we expect revenues to grow faster than the economy during the next 2-3 years and believe there is upside to consensus forecasts for both major US industrial gas companies, Praxair and Air Products (OW; $68.53). In our view, Praxair is the highest-quality industrial gas name in the global sector, with the highest historical returns on operating assets and equity; however, at current valuations Air Products appears more attractive over the next 12-18 months."
The bank expects the company to report 2010 EPS of $4.56, versus consensus estimates of $4.62
