Goldman Sachs upgraded Carlisle Companies (CSL

) to in-line from underperform.

Analyst Deane Dray upgraded on relative valuation. He notes Carlisle's 25% p-e premium has been compressed to 2%. He considers Carlisle a well-managed, diversified industrial company.

Dray sees potential downside to the second quarter due to the impact of unfavorable weather on Syntec, Carlisle's commercial roofing business, which accounts for 25% of revenues. He trimmed the 84 cents second-quarter earnings per share estimate to 82 cents, but raised the third quarter estimate by 2 cents as he expects Carlisle to recoup business. He's keeping his $2.65 2003 estimate.

Dray notes wet weather in the Northeast should result in a strong lawn and garden season for the Tire & Wheel unit, which accounts for 25% of revenues. He also thinks any news on divestitures of Carlisle's money-losing units would be positive.