UPDATE: Bank of America Downgrades Airgas to Underperform, Lowers PT on Decelerating Organic Sales Growth

In a report published Monday, Bank of America analyst Kevin W. McCarthy downgraded the rating on Airgas

from Neutral to Underperform, and lowered the price target from $96.00 to $94.00. In the report, McCarthy noted, “Our change reflects: (1) downward revisions to our estimates and PO given deceleration of organic sales growth; (2) our below-consensus view of F2014 EPS; (3) uncertain prospects for US packaged gas demand driven by weakness in non-residential construction; (4) Airgas' reliance on incremental, SAP-enabled revenue growth to meet Street earnings expectations for F2014, and implications for valuation; and (5) our view of valuation as Airgas' share price exceeds our PO.” Airgas closed on Friday at $98.02.