An analyst Wednesday upgraded Kaydon Corp. to "Buy" from "Hold," saying the supplier of wind turbine bearings and other engineered products should benefit from increased spending on wind power.

In a note to investors, Nigel Coe of Deutsche Bank-North America wrote that despite his concerns about the funding of wind farms because of the credit crisis, federal and state officials will find funding for the alternative power sources.

"In this sense, we believe that wind energy remains a positive to the Kaydon investment story and part of the attraction at these levels is that the wind story is presently a free option for investors," Coe said.

However, Coe reduced his earnings-per-share estimate for the fourth quarter to 49 cents from 67 cents.

He cited his "bearish outlook" on general industrial markets throughout the rest of the year.

However, Coe also said he is attracted to Kaydon's relatively low direct exposure to nonresidential construction and commercial aerospace business that have been hit by the credit crisis. Additionally, he said Kaydon benefits from a relatively low mix of non-U.S. sales at a time when a recession is having a greater impact on Europe than in the United States, he said.

Kaydon on Tuesday reported a more than 4 percent drop in third-quarter profits, even as revenue climbed 18 percent. The most recent quarter included results of Avon Bearings Corp., which Kaydon acquired in the fourth quarter of last year.

Shares of Kaydon finished Tuesday's trading at $24.78, down 55 percent for the year to date.

Other News:
Ahead of the Bell: Kaydon upgraded to 'Buy'
NKE Developed New Series Of Thrust Ball Bearings (Pic)
Seven New Apprentices at NKE AUSTRIA
SKF Consolidates its North American Automotive Seals Manufacturing
＂Think NSK＂ Campaign Unveiled
New Owner for Ryder-Heil Bronze
Motion Industries Recognizes 63 Suppliers with Operational Excellence Supplier Awards
SKF Top Ranked in the Carbon Disclosure Leadership Index