Raven Industries climbs after Dougherty upgrade

Shares of Raven Industries rose sharply Tuesday, as an analyst upgraded the plastics and electronics engineering company after its first-quarter profit beat his estimates.

Dougherty & Co.'s Jeff Evanson moved Raven to "Buy" from "Neutral," saying the company enjoyed strong demand for its products and exhibited impressive performance across all its segments.

Shares gained $1.96, or 5.7 percent, to $36.34.

Evanson raised his price target to $40 from $30. The new target implies an expected return of 16 percent on the stock.

On Monday, the Sioux Falls, S.D., company said its first-quarter profit climbed 27 percent to $10.9 million, or 60 cents per share, on strong demand for its flow control products. The results sent shares up $1.97, or 6.1 percent, to end the day at $34.38.

Evanson anticipated earnings of 60 cents per share.

"Raven Industries reported very solid top and bottom-line growth," Evanson said, noting that it reported better-than-expected revenue in its flow controls, engineered films and Aerostar segments.

Shares of Raven have traded between $25.94 and $45.85 in the last 52 weeks.