UPDATE: Jefferies Raises PT on Gorman-Rupp to $37

Jefferies reiterates its Buy rating on Gorman-Rupp (NYSE: GRC) and raises its price target by $3 to $37 a share as it increases estimates on favorable sales trends in key operations.

Jefferies says, "4Q11 EPS declined, but were in line with our expectations. Comparable EPS were flat. Sales growth exceeded our expectations, but unfavorable mix weakened the gross margin and offset. We are increasing our '12 estimate on the positive sales trends and large backlog. GRC continues to generate good earnings despite continuing weakness in muni water, its primary market. We believe it is positioned for a strong 2012."

GRC closed at $32.86 a share yesterday.