UPDATE: Wedbush Downgrades Franklin Electric Co. to Neutral, Reiterates $43 PT on Valuation

In a report published Tuesday, Wedbush analyst David L. Rose downgraded the rating on

from Outperform to Neutral, but reiterated the $43.00 price target. In the report, Wedbush noted, “Valuation argument [is] more difficult to make at current levels. With the shares surpassing our recently raised price target of $43, we are reducing our rating to NEUTRAL. In our view, the fundamentals remain intact, but the shares are no longer trading at a discount to fair value on a relative or absolute basis. Since early July, the shares have increased 18% versus 12% for the Russell 2000 and 10% for the S&P Mid-Cap. At 22x 2014 EPS estimates, FELE shares are now trading at 34% above their five-year average, and appear to fully reflect future earnings expectations.” Franklin Electric Co. closed on Monday at $43.22.