JPMorgan on Friday upgraded industrial gas supplier Praxair to overweight from neutral, citing greater demand ahead because of Donald Trump's economic policies.
"The general point of view of the new political administration is that there is a need to revitalize American manufacturing. We understand this perspective as a project to raise North American industrial capacity utilization rates. The administration is also focused on increasing domestic energy production. Were progress to be made on either goal, industrial gas companies would benefit," equity analyst Jeffrey Zekauskas wrote in a research note.
He explained energy companies use nitrogen in well production. Contraction in the industry, particularly in North America, has negatively impacted companies such as Praxair.
