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he wrote in a note Tuesday.

The proposed transaction, subject to shareholder and regulatory approval, values BNI near the top end of its historical range on both asset- and earnings-based metrics, Kirkeby said. He raised his target price to $100 from $81, which approximates the proposed deal value.

Nov. 2

Nordstrom Inc. (JWN)

Deutsche Bank upgrades to buy from hold

Lean inventories, contained costs and improving sales should propel profit growth at Nordstrom, said Deutsche Bank analyst Bill Dreher on Nov. 2, upgrading the high-end department store to the firm's highest investment rating.

Nordstrom has cut prices to offset sliding sales, while offering high-quality merchandise, since last fall, said Dreher in a note to investors. The strategy is resonating with the chain's core customers, he said. He also said Nordstrom is taking market share. He expects sales at stores open at least a year to have grown 8% in October. In the second quarter, that measure declined 12.3% and has been moderating since then.

Higher sales, coupled with lean inventories and reduced costs, will contribute to "meaningful" earnings per share growth, Dreher said. He set a $45 price target on the shares.

Airgas (ARG)

First Analysis Securities upgrades to overweight from equal weight

Airgas Iis well-positioned to gain from an economic recovery given improved non-tech industrial production, expectations for rising prices and its strong second-quarter results, said First Analysis Securities analyst Michael Harrison on Nov. 2 as he upgraded the industrial gas producer's stock. Harrison, who has a $58 price target on the stock, believes volumes have bottomed and margins are set to widen going forward.

"Non-tech industrial production showed slower declines in the September quarter, and this key leading indicator would turn year-over-year positive by the March 2010 quarter even if industrial production stays at September levels," he explained. As demand stabilizes, "broad-brush price hikes" are likely, Harrison said, noting that a growing number of independent packaged gas distributors expect higher prices over the next three months, according to a First Analysis Securities survey.

"We also believe an economic recovery could lead to increased acquisition activity, suggesting further top-line and margin upside for Airgas," Harrison said.

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