Graco price target raised to $110 from $93 at RBC Capital

RBC Capital analyst Deane Dray raised the firm’s price target on Graco to $110 from $93 and keeps an Outperform rating on the shares. Graco generates an above-25% operating margin even as it steps up growth investments, and these margins are supported by the strength of its distribution and ability to pass through price, new product development, exclusive focus on differentiated products, and its core competency in manufacturing, the analyst tells investors in a research note.