) to buy from hold.
Analyst Katherine Egbert says his upgrade is predicated on recent encouraging channel checks, along with last night's upside preannouncement, which confirms her belief that the fourth quarter was strong.
She notes her findings from channel checks include: 1) the company's core filtering segment remains underpenetrated, 2) the pricing environment is benign, 3) there's an increase in attach rate on Premium Group products, and 4) she thinks renewal rates are running greater than 80%.
Egbert raises her $1.19 2005 earnings per share estimate to $1.35, and $136 million revenue estimate to $146 million. She boosts her target to $53.